Agent Rebecca represents seller Frank in the sale of his Warwick home. Buyer Gina contacts Rebecca directly, expressing strong interest in Frank's property. Rebecca has not yet disclosed her agency relationship to Gina. Under Rhode Island law, which of the following best describes Rebecca's current obligation and the risk she faces?
Correct Answer
B) Rebecca must disclose her seller agency relationship to Gina at first substantive contact or face potential disciplinary action by the DBR
Under R.I. Gen. Laws § 5-20.6, Rebecca must disclose her agency relationship (seller's agent) to all parties, including prospective buyers like Gina, at the first substantive contact. Failure to provide this disclosure is a violation of the Agency Disclosure Act and can result in disciplinary action by the DBR under § 5-20.5.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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