Agency
In Florida, a real estate licensee who has a material interest in a property being purchased by their client must:
ASimply withdraw from the transaction
BFully disclose the interest to the client in writing✓ Correct
CObtain FREC approval before proceeding
DOnly disclose if the client specifically asks
Explanation
When a licensee has a personal financial interest in a transaction involving their client (e.g.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
State-Specific Concepts
FREC Regulation
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