Jennifer is a Tennessee affiliate broker representing a seller. During an open house, a visitor named Tom asks Jennifer detailed questions about the neighborhood school ratings and expresses that he is pre-approved for a mortgage up to $450,000. Jennifer has not yet provided any disclosure form. Under Tennessee law, what should Jennifer do at this point?
Correct Answer
A) Provide the TREC Agency Disclosure form to Tom immediately, as first substantive contact has occurred
Under Tenn. Code Ann. § 62-13-401 et seq., first substantive contact has clearly occurred because Tom is discussing his financial qualifications (pre-approval amount) and real estate needs (school ratings, implying family housing needs). Tennessee law requires the TREC Agency Disclosure form to be provided at first substantive contact, so Jennifer must provide it immediately.
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Related Topics & Key Terms
Key Terms:
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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