David is a buyer working with an Associate Broker named Lisa in New Mexico. Before Lisa shows David any properties, she hands him a written document that explains the different types of brokerage relationships available in New Mexico and asks him to acknowledge receipt. Under New Mexico law, what is this document called and when must it be provided?
Correct Answer
B) The Brokerage Relationship Disclosure; must be provided at the first substantive contact with the consumer
Under NMSA 1978, §§ 61-29-1 through 61-29-22, and NMAC Title 16, Chapter 61, New Mexico requires licensees to provide a written Brokerage Relationship Disclosure to consumers at the first substantive contact. This document explains the types of brokerage relationships available (seller's agent, buyer's agent, dual agent, transaction broker) so that consumers can make an informed choice about how they wish to be represented.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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