Before writing contracts on behalf of a brokerage, what must a salesperson disclose if the purchaser or seller is a member of their immediate family?

When a salesperson is preparing contracts involving a transaction where the purchaser or seller is a member of their immediate family, it is essential for them to disclose both their status as a licensed salesperson and that they are acting as a principal in the transaction.

Disclosing that they are a licensed salesperson is important to ensure transparency, as it informs the parties involved that the salesperson has formal training and legal standing in real estate transactions. Additionally, indicating that they are acting as a principal clarifies the nature of their involvement in the transaction, where they are not simply representing another party but are personally invested in the outcome due to their familial connection.

This dual disclosure helps to maintain ethical standards, prevent conflicts of interest, and adapt to real estate laws that promote honesty and integrity in real estate dealings. By providing this information, the salesperson helps ensure that all parties are aware of any potential biases and can make informed decisions regarding the transaction.