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Sarah is a Nevada salesperson who has just been hired by Desert Sun Realty. A buyer, Mr. Patel, calls the office asking about a listing and Sarah answers the phone. Sarah has not yet met Mr. Patel in person. Under Nevada law, when must Sarah provide Mr. Patel with the Duties Owed disclosure form?

Correct Answer

D) At the first substantive contact, which may include this phone call if property-specific details are discussed

Under NRS 645.252 and NAC 645.637, the Duties Owed disclosure form must be provided at the first substantive contact, which is defined as a contact where substantive discussions about a specific property or the buyer's needs occur. If Sarah's phone call with Mr. Patel involves discussing a specific listing's details, price, or his needs, this constitutes substantive contact — and the disclosure obligation is triggered even though it is a phone call, not an in-person meeting.

Answer Options
A
Only at the time an offer is submitted, since no agency relationship exists before that point
B
At the first in-person meeting with Mr. Patel, regardless of what is discussed
C
Only after Mr. Patel has signed a buyer-broker agreement with Desert Sun Realty
D
At the first substantive contact, which may include this phone call if property-specific details are discussed

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Related Topics & Key Terms

Key Terms:

first_substantive_contactduties_owed_disclosurephone_contactbuyer_contactnrs_645_252

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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