Under TRESA, if a brokerage trades in real estate on their own account, what disclosure requirement must they meet?
Correct Answer
C) Disclose their interest before any agreement is signed
TRESA requires full disclosure when a brokerage has any ownership interest in a property transaction. This must be disclosed before any agreements are signed to ensure transparency and informed consent.
Why This Is the Correct Answer
Option C is correct because TRESA specifically requires brokerages to disclose any ownership or material interest in a property before any agreements are signed. This pre-agreement disclosure ensures transparency and allows clients to make informed decisions with full knowledge of potential conflicts of interest. The timing is critical - disclosure must happen early enough in the process that clients can consider this information when deciding whether to proceed and on what terms.
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