Agency
When may a California real estate licensee act as a principal (buying or selling for themselves) rather than as an agent?
ANever — licensees must always act as agents
BWhen they disclose in writing that they are a licensed agent acting as a principal in the transaction✓ Correct
COnly with DRE approval for each transaction
DOnly if they are a broker, not a salesperson
Explanation
California licensees may buy or sell property for their own account, but must disclose their licensed status to the other party in writing. Failure to disclose is a violation of the Business and Professions Code.
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