Sarah, a licensed SC salesperson, receives a phone call from Marcus, a first-time homebuyer who found her number online. During the call, Marcus tells Sarah his price range, preferred neighborhoods in Charleston, and asks her to explain the homebuying process. At what point during this interaction was Sarah required to provide the SC agency disclosure?
Correct Answer
B) Sarah should have disclosed when Marcus began sharing his financial range and property preferences during the call
Under SC law, 'first substantive contact' occurs when a consumer begins sharing personal financial information, property preferences, or needs with a licensee — regardless of the communication medium. When Marcus disclosed his price range and preferred neighborhoods, that conversation became substantive. SC regulations do not limit the disclosure obligation to in-person meetings; it applies to phone calls, emails, and other communications as soon as the discussion becomes substantive.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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.
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