Vermont licensee James is working with buyer Elena, helping her search for a home in Burlington. During their second meeting, Elena tells James her budget, her preferred neighborhoods, and that she must close within 60 days due to a job relocation. James has not yet provided a written agency disclosure. Under Vermont law, what is the consequence of this omission?
Correct Answer
B) James has already violated Vermont's agency disclosure requirement, which was triggered at the first substantive contact
Under 26 V.S.A. § 2296 and VREC Rule 4.1, the written agency disclosure must be provided at the first substantive contact. The first meeting, during which Elena discussed her budget, preferred neighborhoods, and timeline, clearly constituted substantive contact. By the second meeting, James has already violated the disclosure requirement. Waiting until a showing, offer, or agreement would not cure the prior violation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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.
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