A real estate agent wants to purchase a property that they have listed for their client. What must they do to proceed ethically?
Correct Answer
C) Provide full disclosure and obtain written consent from the seller
When agents wish to purchase a client's property, they must provide full written disclosure of the conflict of interest and obtain written consent. The client should be advised to seek independent advice to ensure their interests are protected.
Why This Is the Correct Answer
Option C is correct because Canadian real estate legislation mandates full written disclosure when agents have a personal interest in a transaction. Under TRESA and provincial regulations, agents must provide complete transparency about conflicts of interest and obtain explicit written consent from their clients. This ensures the seller understands the situation and can make an informed decision, potentially with independent legal advice. The written documentation protects both parties and demonstrates compliance with regulatory requirements for ethical practice.
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- → Which of the following best describes the duty of confidentiality owed by a real estate agent?
- → What information must an agent disclose to a buyer client about a property's condition?
- → A real estate agent discovers that a property they are showing has a known foundation issue that the seller has not disclosed. What should the agent do?
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A real estate agent represents a seller and discovers that a potential buyer is their spouse's business partner. What should the agent do?
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A BC listing licensee learns of a material latent defect (hidden foundation damage) in the client's property, and the seller instructs the licensee not to disclose it to buyers. Under the Real Estate Services Rules, what must the licensee do?