A recent transaction involved a buyer who is a licensed real estate agent representing himself in the transaction. We were representing the seller.
A red flag was no statement from the buyer indicating they are licensed and representing themselves. Here’s the lowdown;
Agents must disclose their licensing status when conducting real estate business, even if they are representing themselves because “they are held to a higher standard.”
So in the above scenario, the buyer should have presented an agency disclosure OR written the following statement on the offer or addendum to the seller;
“Buyer is a California Licensed Real Estate Agent representing himself”
An interesting side note is that a real estate agent cannot conduct in any real estate business without identifying the broker that they hang their license with. So for an agent who is a FSBO, he must identify on any advertising or other business who the broker is.
Take this a little further, any rental agreements that a licensed agent/owner is preparing for himself, must have the broker identified.
It might be prudent for brokers to have a standing policy that all contracts and rental agreements are to be reviewed by management since there may be liability if the agent performed actions considered illegal or unethical.
If you are an agent whose license is inactive or suspended, you will still need to clarify this as well.
At EscrowCoord.com we take care to ensure the right documents are in the file at close! Since 2010, agents and brokers have been delighted with our professional and top quality services. Call Diana today to see how we can help you!