Free Pennsylvania Real Estate Practice Exam Practice Question
Which of the following conditions MUST be met before a licensee participates in the sale of real property in which the licensee has an ownership interest?
Correct Answer: C
Rationale: Before a licensee can engage in the sale of real property where they hold an ownership interest, they must provide written disclosure of that interest to all parties involved. This transparency ensures that all parties are aware of potential conflicts of interest, fostering trust and compliance with ethical standards.
Option A is incorrect; while notification to the Pennsylvania Real Estate Commission may be a good practice, it is not a mandatory requirement for participation in the sale. Option B, although relevant, does not specifically address the necessity of disclosing ownership interest, which is crucial for ethical dealings. Option D is also incorrect, as detailing the percentage of ownership in the sales contract is not a stipulated requirement, unlike the need for full disclosure.
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