What you must disclose about your sister

Dated: August 20 2012

Views: 2765

My sister is looking for a new home, and I’m acting as her buyer’s agent. Am I required by TREC rules or the Code of Ethics to disclose to the seller that the buyer is my sister?

Texas Real Estate Commission rules require only that you disclose your licensee status in writing to a seller when you are acquiring property on your own behalf, on behalf of a business entity in which you are more than a 10% owner, or on behalf of your spouse, parent, or child.

However, Article 4 of the Code of Ethics requires that you disclose to the seller or the seller’s agent your true position when acquiring any ownership interest in property or presenting offers for yourself, any member of your immediate family, members of your firm, or any entities in which you have any ownership interest. Such disclosure is required to be in writing prior to the signing of any contract.

It is probably a good idea to disclose your status and relationship to any principal to the other party to a transaction even if such a disclosure is not required by TREC or the Code of Ethics. Disclosure can help eliminate complaints or criticism and increase respect for REALTORS®.

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