Question

A licensee should use the disclosure form with prospective sellers or buyers at the first substantive contact. Which of the following illustrates the first substantive contact?

a. individuals walking through an open house who do not speak to an agent

b. individuals who call the real estate office asking about the location of a property for a drive-by on their own

c. a prospective purchaser walking into a real estate office, meeting with an agent, and discussing the purchase of a specific property

d. an agent giving a seminar on home buying to a group of prospective purchasers

Answer 1

The first substantive contact is when a prospective purchaser walks into a real estate office, meets with an agent, and discusses the purchase of a specific property. Other options do not involve significant discussions about a potential transaction.

Step-by-step explanation:

The first substantive contact in this scenario is option c. A prospective purchaser walking into a real estate office, meeting with an agent, and discussing the purchase of a specific property.

Substantive contact refers to a meaningful or significant interaction between the licensee and the prospective seller or buyer, where they engage in discussions about a potential real estate transaction. In this case, meeting with an agent and discussing the purchase of a specific property demonstrates the intention and seriousness of the prospective purchaser.

Options a, b, and d do not meet the criteria for the first substantive contact as they involve casual inquiries or non-personal interactions that do not entail significant discussions about a potential transaction.