DRE & LicensingIntermediateCalifornia Exam

Under California law, a real estate licensee is required to disclose their license status in which of the following situations?

AOnly when selling commercial property, consistent with Business and Professions Code licensing rules
BWhen buying, selling, or leasing property in which they have a personal interestCorrect
COnly when acting as a buyer's agent, under California Department of Real Estate requirements
DOnly when earning a commission greater than 6%, per standard DRE licensing procedure

Why When buying, selling, or leasing property in which they have a personal interest Is Correct

Answer B: When buying, selling, or leasing property in which they have a personal interest

California Business and Professions Code Section 10177 and the DRE regulations require a licensee to disclose their licensed status when they have a personal interest in a transaction — for example, when buying or selling property for themselves. Failure to disclose can be grounds for license discipline.

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