DRE & Licensing
What is 'self-dealing' and why is it prohibited for real estate licensees?
AA licensee representing themselves in a transaction
BWhen a licensee acts in their own financial interest at the expense of their client, violating the duty of loyalty✓ Correct
CA licensee selling their own property without using a broker
DA licensee making their own investment decisions
Explanation
Self-dealing occurs when a licensee uses their position to benefit themselves at the client's expense — such as secretly purchasing a client's property below value or directing business to entities in which they have an interest without disclosure. It violates the duty of loyalty and is grounds for license discipline.
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