When must disclosure forms be presented to prospective buyers and their agents?

The correct answer is that disclosure forms must be presented to prospective buyers and their agents at the first substantive contact. This is a crucial aspect of real estate practice in New York. The rationale behind this requirement is rooted in ensuring transparency and protecting the interests of both buyers and sellers.

The "first substantive contact" refers to any significant interaction that goes beyond casual conversation and delves into specifics about the property. This could include discussions about the price, conditions of the sale, or any features of the property. By presenting the disclosure forms at this stage, agents provide buyers with essential information regarding the property's condition, potential issues, and the legal obligations involved in the transaction. This timely disclosure helps buyers make informed decisions and mitigates the risk of disputes later in the process.

In contrast, presenting the forms during closing, after an offer is made, or at the time of listing fails to align with the legal requirements designed to safeguard both parties in the real estate transaction and can lead to misunderstandings or legal complications. Hence, timely and appropriate disclosure fosters a more transparent and efficient transaction process.