Sarah is a Rhode Island licensed salesperson working at Sunrise Realty. A buyer named Tom walks into the office and begins discussing his home search with Sarah. Under Rhode Island's Agency Disclosure Act, when must Sarah disclose her agency relationship to Tom?
Correct Answer
A) At the first substantive contact with Tom
R.I. Gen. Laws § 5-20.6 requires that real estate licensees disclose their agency relationship to all parties at the first substantive contact. This means the disclosure must occur at the beginning of any meaningful discussion about real estate needs, not at a later transactional milestone.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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