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AgencyFirst_substantive_contact_disclosureMEDIUM

Under South Carolina agency disclosure law, which of the following scenarios does NOT constitute 'first substantive contact' that would require immediate presentation of the agency disclosure form?

Correct Answer

D) A licensee places a classified advertisement in a local newspaper listing an available property for sale

Placing a classified advertisement is a unilateral marketing activity by the licensee. No interaction with a specific consumer has occurred, and no consumer has shared personal needs, financial information, or property preferences. Advertising does not constitute substantive contact with a prospective buyer or seller because there is no exchange of information between the licensee and a specific individual. Therefore, no agency disclosure obligation is triggered by the act of advertising alone.

Answer Options
A
A buyer tells a licensee her maximum purchase price and asks to see homes with a pool in a specific Hilton Head neighborhood
B
A seller asks a licensee to evaluate his home's market value and discuss a recommended listing strategy
C
A buyer asks a licensee detailed questions about a specific property's HOA fees and recent price reductions
D
A licensee places a classified advertisement in a local newspaper listing an available property for sale

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Related Topics & Key Terms

Key Terms:

first_substantive_contactreverse_questionadvertising_exemptionagency_disclosure

Related Concepts

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.

The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.

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