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AgencyFirst_substantive_contact_disclosureHARD

Licensee Angela is a buyer's agent in South Carolina. Her client, David, has asked her to contact the listing agent of a property he is interested in to get more details. Angela calls listing agent Frank and, during the conversation, asks about the seller's motivation for selling, how long the property has been on the market, and whether the seller has received any other offers. Frank answers all of Angela's questions without presenting an agency disclosure form to Angela. Under SC law, which statement is most accurate?

Correct Answer

B) Frank had no obligation to present the agency disclosure form because Angela is a licensee, not a consumer

South Carolina's agency disclosure requirement is designed to protect consumers — buyers and sellers who may not understand the nature of agency relationships. When a licensee communicates with another licensee acting in a professional capacity, the disclosure form is not required because the other party is a real estate professional who already understands agency relationships. Angela is David's agent and is contacting Frank in her professional capacity as a licensee, not as a consumer seeking representation. Therefore, Frank has no obligation to present the agency disclosure form to Angela.

Answer Options
A
Frank violated SC law by failing to present the agency disclosure form to Angela at the start of their conversation
B
Frank had no obligation to present the agency disclosure form because Angela is a licensee, not a consumer
C
Frank violated SC law because he should not have answered questions about the seller's motivation without written consent
D
Frank complied with SC law because the disclosure obligation only applies when speaking with unrepresented parties

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Related Topics & Key Terms

Key Terms:

licensee_to_licenseeconsumer_protectionagency_disclosure_exemptionfirst_substantive_contact

Related Concepts

An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.

The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.

The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.

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