Fact or Fiction?

If a real estate sales professional is related to a buyer or seller, they must disclose the relationship in writing. This applies when working with clients and customers.

FACT

The general rule is that if the real estate sales representative is related to the buyer or the seller of the property, he or she has to disclose the relationship in writing to all other parties to the purchase and sale agreement.

*This rule applies whether or not the other parties to the transaction are clients or customers of the real estate professional’s brokerage.

For example, if the real estate professional is related to the seller, the professional has to disclose this to the buyer in writing. Likewise, if the real estate professional is related to the buyer, the professional has to disclose this in writing to the seller.

If the real estate sales professional has any interest in the property, he or she has to disclose their relationship before an offer is made.

Reference: Reco's Ask Joe Column