Wisconsin broker Elena is working with buyer client Dave under a signed buyer agency agreement. Dave is interested in a property that Elena herself owns personally. Under Wisconsin law, what must Elena do before proceeding with this transaction?
Correct Answer
B) Elena must disclose her ownership interest in writing to Dave and obtain his written informed consent before proceeding
Under Wisconsin Statutes Chapter 452 and REEB 24, a licensee who has a personal interest in a property being sold to a client must disclose that interest in writing to the client and obtain the client's written informed consent before proceeding. This is a specific application of the fiduciary duty of disclosure and the prohibition on undisclosed self-dealing. Elena must be transparent about her ownership so Dave can make an informed decision about whether to continue working with her on this property.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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