REALTORSÂ® shall not acquire an interest in or buy or present offers from themselves, any member of their immediate families, their firms or any member thereof, or any entities in which they have any ownership interest, any real property without making their true position known to the owner or the ownerâ€™s agent or broker. In selling property they own, or in which they have any interest, REALTORSÂ® shall reveal their ownership or interest in writing to the purchaser or the purchaserâ€™s representative. (Amended 1/00)
Standard of Practice 4-1
For the protection of all parties, the disclosures required by Article 4 shall be in writing and provided by REALTORSÂ® prior to the signing of any contract. (Adopted 2/86)
NOT disclose the existence of his real estate license. The disclosure of a sales agent’s or
broker’s license is only required when the individual holds himself out as an agent in a
transaction with the expectation of a fee.
California real estate law does not explicitly state a licensee need not disclose their license status when acting as a principal in a real estate sales transaction. Likewise, there is no specific mandate that a DRE licensee must disclose their license status when acting solely as a principal in a real estate sales transaction. This ostensible lapse in real estate law is due to the fact that the law focuses strictly onthe definition of agency duties and the rights and limitations pertaining to the use of a real estate license. The law does not address the comportment of principals in real estate transactions. Thus, real estate law governing the use of a DRE license only controls when one acts in the capacity of an agent. Individuals acting as principals in real estate transactions are not subject to the rules governing licensees, regardless of their status as a real estate sales agent or broker.