Affiliate Broker Greg receives a call from a seller who wants to list her Chattanooga home. During the call, they discuss the property's estimated value, the seller's motivation for moving, and her desired listing price. Greg has not yet presented the TREC Agency Disclosure form. Which of the following best describes Greg's compliance status?
Correct Answer
C) Greg has violated Tennessee law by failing to provide the disclosure at first substantive contact
Under Tenn. Code Ann. § 62-13-405, the TREC-approved Agency Disclosure form must be provided at first substantive contact. A telephone conversation in which the parties discuss the property's estimated value, the seller's motivation, and desired listing price clearly constitutes first substantive contact — it involves specific real estate business. Greg was required to ensure the disclosure was provided at this point, and his failure to do so violates Tennessee law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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