Agent Torres is a Wisconsin licensee who has been working with buyer Kevin for several weeks under a signed buyer agency agreement. Kevin has become interested in a property where Torres has a personal financial interest as a part-owner of the LLC that holds the property. Under Wisconsin Statutes Chapter 452, what must Torres do BEFORE writing an offer for Kevin on this property?
Correct Answer
A) Disclose in writing to Kevin that Torres has a personal financial interest in the property
Under Wisconsin Statutes Chapter 452, a licensee who has a personal financial interest in a property being purchased by their client must disclose that interest to the client in writing before the transaction proceeds. This written disclosure of personal interest is a mandatory requirement under Wisconsin's licensee conduct rules and cannot be satisfied by a verbal disclosure alone. The client must be informed in writing so they can make an informed decision about whether to proceed with the same agent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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