Sarah is a licensed salesperson at Horizon Realty in Fargo. She meets a prospective buyer, Tom, for the first time at a property showing. According to North Dakota Administrative Code Title 70, when must Sarah provide Tom with the required agency disclosure?
Correct Answer
B) At the first substantive contact with Tom
North Dakota Administrative Code Title 70 requires that agency disclosure be made at the first substantive contact with a consumer. A property showing constitutes substantive contact, so Sarah must provide the disclosure at that initial meeting — not later when an offer is made or financing is arranged.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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