Sarah is an affiliate broker in Nashville. She meets a potential buyer, Marcus, at an open house and begins discussing his budget, preferred neighborhoods, and timeline to purchase. At what point is Sarah required to present the TREC-approved Agency Disclosure form to Marcus?
Correct Answer
C) During this initial conversation, as it constitutes first substantive contact
Under Tenn. Code Ann. § 62-13-405, the TREC-approved Agency Disclosure form must be provided at first substantive contact. A conversation in which Sarah and Marcus discuss his budget, preferred neighborhoods, and purchase timeline clearly qualifies as 'first substantive contact' because it involves specific real estate needs and financial qualifications. Sarah must present the form during this open house conversation.
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Related Topics & Key Terms
Key Terms:
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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