South Dakota broker Mark represents seller Diane under a listing agreement. Buyer Ted approaches Mark and says, 'I understand you represent the seller, and that's fine with me. I don't need my own agent.' Mark verbally explains the agency situation to Ted and Ted verbally agrees to proceed. Has Mark satisfied South Dakota's agency disclosure requirements?
Correct Answer
C) No, because South Dakota requires written agency disclosure to all parties
Under SDCL 36-21A-136, South Dakota requires licensees to provide written agency disclosure to all parties at first substantive contact. A verbal explanation and verbal acknowledgment do not satisfy this requirement. Mark must provide Ted with a written agency disclosure form specifying the nature of the agency relationship before proceeding with substantive discussions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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.
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