Question

Sam is an associate broker who wishes to purchase an investment property. What must Sam do when the property is not listed with any broker?

a. disclose to the seller that he has a license and inform his broker of the transaction
b. use a special sales agreement executed by a neutral attorney
c. have his broker list the property so that the commission can be properly handled
d. list the property himself so he can get a commission on the purchase

Answer 1

A) disclose to the seller that he has a license and inform his broker of the transaction

Step-by-step explanation:

Even though Sam is trying to purchase the property for himself, he must still inform the seller about his broker status. It probably wouldn't affect the sale in any way, but the obligation to disclose the information exists.

The same applies to Sam's broker, even though the transaction will not generate any commission, he still has to inform about it.