•Licensees often buy and sell property for their own accounts. Licensees who buy their own listing have substantial exposure to charges of misrepresentation. The licensee has probably helped the seller establish a listing price. The licensee has, therefore, acquired confidential information about the motivation of the seller and must act fairly when purchasing the property.
•The parties now have opposing interests in the transaction. The licensee must tell the seller any known information about the property and should say in the contract that the licensee does not represent the seller. A licensee may accept a commission in the transaction if the buyer or seller gives informed consent. •A licensee who buys property for a personal account and shows a good-faith deposit in the contract must comply with the FR EC requirements for such deposits.
Courtesy of Rowlett Real Estate School LLC
P.Stone, RRES
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