Minnesota State Real Estate Practice Test

When must a salesperson provide an agency disclosure form?

1. At the first meeting with the buyer

2. At the first substantive meeting with the consumer

3. Before marketing the property

4. After the purchase agreement is signed

The correct answer is: At the first substantive meeting with the consumer

The requirement for a salesperson to provide an agency disclosure form is tied to the moment when substantive discussions about a property or the buyer's needs take place. This ensures that the consumer is fully aware of the nature of the agency relationship being established. By providing the disclosure at the first substantive meeting, the salesperson ensures that the consumer understands their representation and the obligations that come with it before any agreements or negotiations are formally initiated. This approach protects consumers by giving them pertinent information about who represents their interests, thereby allowing them to make informed decisions. It also helps maintain transparency within the real estate transaction process, reducing the potential for misunderstandings later on. The other choices do not accurately reflect the legal requirements. Meeting at the first instance does not necessarily encompass a substantive interaction, and waiting until after marketing or after the purchase agreement is signed would not fulfill the obligation to inform the consumer in a timely manner.