Sarah, a licensed real estate agent, wants to purchase a property listed by her own agency but handled by a colleague. What disclosure requirements must be met?
Correct Answer
C) Written disclosure of her interest to the vendor before she makes any offer
When any licensed agent within an agency wishes to purchase a property listed by that agency, written disclosure must be made to the vendor before making an offer. This ensures transparency and protects against potential conflicts of interest.
Why This Is the Correct Answer
When anyone in the listing agency wants to buy, the agency's loyalty to the vendor is compromised. The vendor must receive written disclosure before an offer is made, so the conflict can be weighed from the start.
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Previous Question
Sarah, a licensed real estate agent, receives two offers on the same day for a property she has listed. One offer is higher but from a buyer she knows has financing issues, while the other is lower but from a pre-approved buyer. What is Sarah's primary obligation?
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Under agency law, when can a real estate agent delegate their authority to a third party?