Question

A licensee negotiates the sale of a home intended for his fiancée and himself. He properly identifies himself as a licensee to the seller but neglects to disclose that he is getting married to the buyer. Do the actions of the licensee violate the license law?

A-Yes, because a licensee cannot purchase or negotiate the sale of property in which the licensee will have a future interest.
B-Yes, because the licensee did not disclose his possible future interest to the seller.
C-No, because a licensee's marital plans do not require agency disclosure.
D-No, because a licensee is simply required to give proper real estate company identification only.

Answer 1

Yes, the actions of the licensee violate the license law because they did not disclose their future interest in the property.

Step-by-step explanation:

The actions of the licensee violate the license law. The correct answer is A-Yes, because a licensee cannot purchase or negotiate the sale of property in which the licensee will have a future interest. licensees are required to disclose all relevant information to the seller, including any potential conflicts of interest. In this case, the licensee's future marriage to the buyer creates a potential conflict of interest and should have been disclosed.