Vermont licensee Derek is representing buyer Olivia. Before the agency disclosure is signed, Derek shows Olivia a property listed by his own brokerage and tells her it is 'a great deal.' Olivia makes an offer and later discovers that Derek never provided the required written agency disclosure. Under Vermont law, which of the following is most accurate regarding the consequences for Derek?
Correct Answer
B) Derek may face disciplinary action by the Vermont Real Estate Commission for violating the agency disclosure requirement under 26 V.S.A. § 2296
Under 26 V.S.A. § 2296 and VREC Rule 4.1, the written agency disclosure must be provided at the first substantive contact. Derek's failure to provide the disclosure before showing Olivia a property and encouraging her to make an offer is a direct violation of Vermont's agency disclosure law. The Vermont Real Estate Commission has authority under 26 V.S.A. Chapter 41 to impose disciplinary sanctions, including fines, license suspension, or revocation, for violations of the disclosure requirement, regardless of whether the client suffered a measurable financial loss.
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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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