Broker Elaine operates an independent brokerage in Murray, Utah. She is approached by a buyer, Tom, who wants to purchase a property that Elaine herself owns. Elaine agrees to help Tom purchase her property. Under Utah law, what must Elaine do before proceeding with this transaction?
Correct Answer
B) Elaine must disclose in writing that she is the owner of the property and obtain Tom's written acknowledgment
Under Utah Code Ann. § 61-2f and Utah Administrative Code R162-2f, a licensee who has a personal interest in a transaction — including selling property they own — must disclose that interest in writing to all parties and obtain written acknowledgment before proceeding. This disclosure requirement protects the buyer by ensuring they know they are dealing directly with the property owner who also holds a real estate license. Failure to disclose constitutes grounds for disciplinary action.
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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.
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