Broker David represents the seller of a home in Memphis. Buyer Linda contacts David directly to inquire about the property. David explains the listing details and schedules a showing. Which agency relationship must David disclose to Linda, and when?
Correct Answer
A) David must disclose that he represents the seller, at first substantive contact with Linda
Under Tenn. Code Ann. § 62-13-405, David must disclose his agency status — that he represents the seller — using the TREC-approved Agency Disclosure form at first substantive contact with Linda. When Linda called to inquire about the property and David began discussing listing details, that conversation constitutes first substantive contact, triggering the disclosure obligation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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.
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