Under RESA, what obligation does a licensee have when dealing with an unrepresented party?
Correct Answer
A) The licensee must say they do not represent them and recommend independent advice
When dealing with an unrepresented party, RESA requires the licensee to clearly inform that party that the licensee does not represent them and to recommend that they seek independent professional advice. The licensee must still act honestly and with reasonable care.
Why This Is the Correct Answer
Option A is correct because under RESA, when dealing with an unrepresented party, the licensee must clearly inform that party that the licensee does not represent them. The licensee should recommend that the unrepresented party seek independent professional advice (from a lawyer or another licensee). This ensures the unrepresented party is not misled about the nature of the relationship and can protect their own interests.
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Previous Question
Under RESA, a managing broker becomes aware that a licensee in the brokerage has failed to disclose a conflict of interest in a transaction. What is the managing broker's obligation?
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Under RESA, which of the following is a duty that a licensee owes to ALL parties in a transaction, including unrepresented parties?