California · Chapter 15 of 59
Disclosure of Acting as Principal or Other Interest
When a licensee buys or sells for themselves, family, or when they have an ownership interest.
15-minute read · Built for the DRE Salesperson Exam
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When the Licensee Is the Principal
When a licensee buys or sells property for themselves (or for a family member, or a business they own or have an interest in), they must disclose this fact to the other party in writing. This is called a principal disclosure. The licensee cannot pretend to be merely an agent when they have a personal financial interest in the transaction.
B&P Code §10176(h), §10177(o)
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