Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A Florida real estate sales associate is presenting an offer on a property to a seller. The sales associate has a personal financial interest in the property being sold because their spouse is a part-owner. What is the sales associate's primary obligation in this situation?
- AProceed with the presentation as usual, as the interest is indirect through a spouse.
- BAbstain from presenting the offer to avoid a conflict of interest.
- CDisclose their personal interest to all parties in writing before the offer is presented.
- DOnly disclose the interest if directly asked by the seller or buyer.
Show answer & explanationAnswer & explanation
Correct answer: C. Disclose their personal interest to all parties in writing before the offer is presented.
A licensee with a personal interest (or an interest through a family member) in a transaction must always disclose that interest to all parties in writing before proceeding with the transaction to avoid a conflict of interest.
Why the other options are wrong
- A. An indirect interest through a spouse is still considered a personal interest that requires disclosure.
- B. Abstaining is not required if proper disclosure is made; the transaction can proceed ethically.
- D. Disclosure must be proactive and in writing, not reactive or dependent on being asked.
Licensee Personal Interest Disclosure
A real estate licensee must disclose any personal financial interest, or an interest of a close family member, in a property being transacted, to all parties in writing, prior to the transaction.
- Applies to personal or family interest.
- Must be disclosed to all parties.
- Disclosure must be in writing and timely.
Memory trick: If your wallet or your kin are involved, everyone needs to know in writing.