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Maryland licensee Diane is holding an open house for a listed property. A visitor, Greg, begins asking detailed questions about the neighborhood and expresses strong interest in making an offer. Diane has not yet provided Greg with any agency disclosure. Under Maryland's brokerage relationship disclosure rules, when must Diane provide Greg with the written Disclosure of Brokerage Relationship form?

Correct Answer

B) At the first substantive contact with Greg, which has already occurred during the open house conversation

Maryland law requires a licensee to provide the written Disclosure of Brokerage Relationship form at the first substantive contact with a prospective buyer or seller. A substantive contact occurs when there is a discussion of specific real estate needs, financial qualifications, or motivation to buy or sell. Greg's detailed questions about the neighborhood and expressed interest in making an offer constitute a substantive contact, meaning Diane should provide the disclosure form during the open house conversation — not at a later point in the transaction.

Answer Options
A
Before Greg signs any purchase contract
B
At the first substantive contact with Greg, which has already occurred during the open house conversation
C
Only if Greg formally requests buyer representation from Diane
D
At the time Diane presents any offer Greg submits to the seller

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Related Topics & Key Terms

Key Terms:

fiduciary_dutiesbrokerage_disclosureopen_housefirst_substantive_contactmrecdisclosure_timing

Related Concepts

An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.

A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.

An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.

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