Agent Maria works for Bluegrass Realty and has been hired by seller Tom to list his Louisville home. A buyer named Kevin calls the office asking general questions about the neighborhood and price range. During this phone call, Kevin asks Maria whether the home has had any flooding issues. At what point is Maria required to disclose her agency relationship to Kevin?
Correct Answer
A) During this phone call, since it constitutes first substantive contact
Under KRS 324.360 and 201 KAR 11:121, the agency disclosure obligation is triggered at first substantive contact. Kevin's phone call — in which he asks specific questions about property conditions such as flooding — constitutes substantive contact. Maria must disclose that she represents the seller during this call, before further discussion occurs.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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