In accordance with the Commissioner’s Rule, R4-28-1101 (B), a licensee participating in a real estate transaction must disclose in writing any information the licensee possesses that materially or adversely affects the consideration to be paid by any party to the transaction, including:
- Any information that the seller or lessor is or may be unable to perform.
- Any information that the buyer or lessee is or may be unable to perform.
- Any material defect existing in the property being transferred.
- The existence of a lien or encumbrance on the property being transferred.
In accordance with the Commissioner’s Rule, R4-28-1101 (E), a licensee shall not act directly or indirectly in a transaction without informing the other parties in the transaction, in writing and before the parties enter any binding agreement, of a present or prospective interest or conflict in the transaction, including that the:
- Licensee has a license and is acting as a principal.
- Buyer or Seller is a member of the licensee’s immediate family.
- Buyer or Seller is the licensee’s employing broker, or owns or is employed by the licensee’s employing broker.
- Licensee or a member of the licensee’s immediate family has a financial interest in the transaction other than the licensee’s receipt of compensation for the real estate services.
In accordance with the Commissioner’s Rule, R4-28-1101 (F), a licensee shall not accept compensation from or represent more than one party to a transaction without the prior written consent of all parties.
NOTE: The above listed disclosure issues reflect only those requirements in the Commissioner’s Rules. Refer to other Federal, State, County and/or City statutes or regulations, which may contain additional required disclosures relating to a real estate transaction.