Licensee Tom attends an open house hosted by listing agent Karen. A visitor named Helen tells Tom she is very interested in the property and asks him detailed questions about comparable sales and financing options. Tom is not Helen's agent, and he works for a different brokerage. Under Kentucky law, what is Tom's agency disclosure obligation in this situation?
Correct Answer
B) Tom must disclose his agency status to Helen at this point, since their conversation constitutes first substantive contact
Under KRS 324.360 and 201 KAR 11:121, any Kentucky licensee must disclose their agency relationship — or lack thereof — at first substantive contact, regardless of the setting. Tom's engagement with Helen about comparable sales and financing options is clearly substantive. Tom must disclose at this point that he does not represent Helen (or disclose whatever relationship he does or does not have), so Helen understands who he works for.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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