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AgencyDisclosure_requirements_and_timingHARD

Licensee Carl works at Paducah Premier Realty. He meets prospective buyer Linda at a community event. Linda mentions she is thinking about buying a home in the next few months and asks Carl for his business card. Carl gives her his card and they chat briefly about the general real estate market. No specific property is discussed. Three weeks later, Linda calls Carl and asks him to show her a specific listing. At what point was Carl required to provide the agency disclosure form to Linda under Kentucky law?

Correct Answer

C) When Linda called Carl three weeks later to request a showing of a specific property

Under KRS 324.360 and 201 KAR 11:121, the agency disclosure obligation is triggered at 'first substantive contact.' The brief conversation at the community event — where no specific property was discussed and only general market topics were raised — does not rise to the level of substantive contact. The first substantive contact occurred when Linda called Carl to request a showing of a specific property, at which point Carl must provide the written agency disclosure before or during that call.

Answer Options
A
At the community event, when Linda first expressed interest in buying a home
B
When Carl gave Linda his business card at the community event
C
When Linda called Carl three weeks later to request a showing of a specific property
D
Only after Carl actually shows Linda the property and she expresses interest in making an offer

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Related Topics & Key Terms

Key Terms:

first_substantive_contactagency_disclosuretimingdefinition_of_substantivebuyer_representation

Related Concepts

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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