Agency
In New Mexico, which of the following best describes the entire purpose of agency disclosure requirements at first substantial contact?
ATo satisfy NMREC recordkeeping requirements
BTo ensure consumers understand who the licensee represents, what duties are owed, and how to make informed choices about their real estate representation before substantive discussions begin✓ Correct
CTo protect the broker's commission
DTo satisfy the MLS participation requirements
Explanation
Agency disclosure is a consumer protection measure — it ensures buyers and sellers understand the nature of the licensee's representation (or lack thereof) before sharing confidential information or making decisions that could be affected by the agency relationship.
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