Do I have to tell the seller that I’m related to the buyer?
01/09/2015 | Author: Editorial Staff
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?
Yes. 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 (which includes siblings), members of your firm, or any entities in which you have any ownership interest.
In addition, when you are selling property you own or in which you have an interest, the Code of Ethics requires you to reveal your ownership or interest to the buyer or buyer’s agent in writing.
These disclosures are required to be in writing prior to the signing of any contract.
TREC rules only require 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 own more than 10%, or on behalf of your spouse, parent, or child.
It is probably a good idea to disclose your relationship with 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 can increase respect for REALTORS®.
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