Leasing License Practice Exam

How can licensees disclose their status as a licensee when selling or purchasing property?

1. By using social media to announce their license status

2. By indicating on For Sale yard signs that the property is "Agent owned"

3. By discussing their license status privately with potential buyers

4. By publishing a newsletter about their real estate background

The correct answer is: By indicating on For Sale yard signs that the property is "Agent owned"

Indicating on For Sale yard signs that the property is "Agent owned" is an effective way for licensees to disclose their status when selling or purchasing property. This practice adheres to the principle of transparency, enabling potential buyers to be aware that the seller is a licensed agent, which can influence their level of trust and the information they receive about the property. Clearly labeling ownership on signage ensures that the disclosure is direct and visible to anyone interested in the property, thereby fulfilling legal and ethical obligations to inform buyers of potential conflicts of interest. Other methods, while they might promote awareness of the licensee's qualifications or status, do not provide the same level of clear, immediate disclosure to prospective buyers as the sign does. For example, using social media might not effectively reach potential buyers directly involved in the transaction, and discussing license status privately may not ensure that all interested parties are informed. A newsletter, while informative, may not be a direct method of stating one’s status during an active transaction. The sign serves a practical purpose in the selling process and helps maintain transparency in real estate dealings.