Elena, a Washington broker, is working with a buyer client, Michael. Elena's sister owns a property that Michael is interested in purchasing. Elena discloses the family relationship in writing to Michael, who signs an acknowledgment and agrees to proceed. Elena then negotiates the purchase on Michael's behalf. After closing, Michael believes he overpaid and files a DOL complaint alleging Elena failed to represent his interests. Under RCW 18.85 and RCW 18.86, which statement best describes Elena's situation?
Correct Answer
A) Elena likely complied with her obligations because she made written disclosure of the conflict and Michael consented.
Under RCW 18.85 and RCW 18.86, a broker is not prohibited from representing a buyer in a transaction involving a family member's property, provided the conflict of interest is fully disclosed in writing and the client gives informed consent. Elena's written disclosure and Michael's signed acknowledgment satisfy this requirement, and her continued representation of Michael does not automatically constitute a violation.
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Related Topics & Key Terms
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Related Concepts
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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