Salesperson Derek is working as a buyer's agent for a couple purchasing a home in Shreveport. The listing agent works for a different brokerage. When Derek presents an offer to the listing agent, which agency disclosure obligation has Derek already fulfilled under Louisiana law?
Correct Answer
B) Derek must have disclosed his buyer agency relationship to his buyers at first substantive contact
Louisiana law requires a licensee acting as a buyer's agent to disclose that agency relationship to the buyer client at first substantive contact (La. R.S. 37:1467). By the time Derek presents an offer, he should have already fulfilled this obligation to his own clients — the buyers — at the outset of the relationship. The disclosure runs from agent to the party they represent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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.
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