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I’m the principal in a transaction. Do I have to disclose that I have a real estate license?

Yes. When you are acting as a principal in a transaction, you must disclose in writing to the other party that you have a real estate license.

  • You also have to disclose when:

    • you are acting on behalf of your spouse parent or child;

    • you own more than 10% of a business entity; or

    • you are the trustee for a trust that you, your spouse, parent or child is a beneficiary.

  • The disclosure is required even when your license is on inactive status.

When should I make this disclosure?

  • It is best to disclose it as early as possible but it must be disclosed in the contract, lease, or in another written document given to the other principal before the agreement is signed.

  • The contract forms promulgated by the Commission typically have a designated paragraph for this type of disclosure. 

And, while you’re at it, be sure not to use your expertise to the disadvantage of a person with whom you are dealing on the transaction. For further legal details, see Commission Rule 535.144 and Section 1101.652(a-1)(1).