A Maryland salesperson, Theresa, represented a buyer in the purchase of a home. After closing, it was discovered that Theresa had a 10% ownership interest in the property she sold to her client and had not disclosed this interest to the buyer or to MREC. Under the Maryland Real Estate Brokers Act, Theresa's failure to disclose her ownership interest is best classified as which type of violation?
Correct Answer
B) Failure to disclose a conflict of interest, because Theresa had a personal financial stake in the transaction
Under Md. Code Ann., Bus. Occ. & Prof. § 17-528, a licensee who has a personal interest in a property being bought or sold must disclose that interest in writing to all parties before entering into a contract. Theresa's failure to disclose her 10% ownership interest constitutes a failure to disclose a conflict of interest, which is a disciplinable offense under the Brokers Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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