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AgencyFirst_substantive_contact_disclosureEASY

Agent Lisa in Charleston, SC presents the required agency disclosure form to buyer prospect James at their first meeting. James reads the form but refuses to sign it, saying he does not want to commit to anything in writing. What should Lisa do under South Carolina law?

Correct Answer

B) Lisa should note on the form that James refused to sign, and she may continue working with him

Under South Carolina law, a licensee is required to present the agency disclosure form at first substantive contact and to obtain the consumer's signature acknowledging receipt. However, if a consumer refuses to sign, the licensee is not prohibited from continuing to work with that consumer. The licensee should document the refusal by noting it on the form — indicating the date, that the form was presented, and that the consumer declined to sign. This documentation protects the licensee and demonstrates compliance with the presentation obligation.

Answer Options
A
Lisa must refuse to work with James until he signs the agency disclosure form
B
Lisa should note on the form that James refused to sign, and she may continue working with him
C
Lisa must report James's refusal to the South Carolina Real Estate Commission immediately
D
Lisa must obtain a supervisor's signature on the form to substitute for James's missing signature

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Related Topics & Key Terms

Key Terms:

agency_disclosurerefusal_to_signdocumentationconsumer_rights

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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