A California licensee sees a listed home they want to buy for themselves and writes an offer in their own name. What must the licensee disclose to the seller?
Correct Answer
A) That the licensee holds a real estate license and is buying for their own account
A licensee who buys for their own account must reveal both their licensed status and the fact that they are acting as a principal, and must do so before the seller commits, because a seller's evaluation of an offer changes when the buyer is someone with professional knowledge of market value. Concealing either fact is a substantial misrepresentation and dishonest dealing for which the Commissioner may discipline the licensee under Business and Professions Code Section 10176. Disclosure does not bar the purchase: a licensee may buy for their own account, but must do so openly rather than trading on an appearance the seller has been left to assume.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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