Leasing License Practice Exam

What is required from a licensee when engaging in a real estate transaction?

1. Disclosure of their employment history

2. Disclosure of their license status in writing

3. Certification of their education

4. Notification of their commission rate

The correct answer is: Disclosure of their license status in writing

In a real estate transaction, it is crucial for a licensee to disclose their license status in writing to ensure transparency and to comply with legal requirements. This disclosure helps to inform all parties involved in the transaction that the individual is a licensed professional, which can instill confidence and trust in their expertise and practices. Providing written confirmation of their license status is not only a best practice but also a regulatory requirement in many jurisdictions, helping to protect consumers. The other options do play a role in real estate practice but are not as universally mandated. For example, while sharing employment history may provide context about a licensee's experience, it is not typically required by law in a transaction. Similarly, certifying education or notifying clients of their commission rate, while they can be important aspects of the business relationship, are not specifically required in the same manner as disclosing licensing status. This focus on written disclosure aligns with the fundamental principle of promoting honesty and transparency within the real estate profession.