Question

Suzanne just hired her sister, real estate licensee Geraldine, to list her property. Another broker schedules a showing for his client who's interested in Suzanne's property. What needs to take place?

a) Geraldine doesn't need to do anything special, since she doesn't own the property.
b) Geraldine must terminate her contract with Suzanne, since she can't represent a family member.
c) Geraldine needs to disclose in writing to the other broker and his client that the property is owned by a family member.
d) Geraldine needs to keep the fact that the property is owned by her sister confidential.

Answer 1

Geraldine needs to disclose her family relationship with the property owner in writing to maintain ethical standards and transparency in the real estate transaction.

Step-by-step explanation:

It is essential in the real estate industry to maintain transparency in dealings to ensure all parties are aware of any potential conflicts of interest. In the scenario provided, option c) is the correct course of action. Geraldine needs to disclose in writing to the other broker and his client that the property is owned by a family member. This disclosure is critical to maintain ethical standards and for the protection of all parties involved.

The ethical obligation for disclosure is not only a matter of professional conduct but can also be a legal requirement in many jurisdictions. It serves to avoid any appearance of impropriety or conflicts of interest. By disclosing the relationship upfront, Geraldine ensures that the buyer is fully informed and able to make decisions based on all relevant facts.