Maine Real Estate License Practice Exam

When must a licensee furnish copies of documents to all parties involved in a transaction?

1. At the time of closing

2. Only upon request of the parties

3. At the time the document is signed

4. Before any agreements are made

The correct answer is: At the time the document is signed

A licensee is required to furnish copies of documents to all parties involved in a transaction at the time the document is signed. This practice ensures transparency and reinforces the principle of informed consent in real estate transactions. Providing copies at this stage allows all parties to review the terms and conditions they are agreeing to, which is fundamental for establishing clear communication and minimizing disputes later on. Distributing copies only at the time of closing, upon request, or before any agreements are made does not uphold the standard of transparency expected within the industry. Waiting until closing could lead to confusion or last-minute disagreements about the terms, while only providing copies when requested could create barriers to understanding for parties who may not be fully aware of their rights or obligations. If documents are handed out before any agreements are made, there may be a lack of context for the parties regarding what they are signing, potentially leading to misunderstandings about the commitments being entered into.