April 18, 2023
Video transcript: Disclosure Requirements (When Acting as a Principal)
There's some disclosure requirements that you need to be aware of when you're acting as a principal. What I mean by principal in this case is a buyer, seller, landlord or lessee. As a real estate professional, you've got more education and experience in real estate than the general public does. Ehen you're acting as a principal in a transaction there's a possibility that the general public could be at an unfair disadvantage.
It's no surprise given, given that the state of Washington is concerned with protecting the public, that this is a case where they would codify additional requirements for the licensee. It's required that any licensee provide disclosure, in writing, that he or she is a licensed broker or managing broker, when they're acting as a principal. It's even listed as one of the actions that if you don't actually do it could make you subject to discipline by the Department of Licensing. The RCW States that it’s a violation when: “Buying, selling, or leasing directly, or through a third party, or any interest in real property without disclosing in writing that he or she holds a real estate license.”
I personally met this requirement with varying levels of detail. One, I’ll state that I'm a real estate broker and which brokerage I'm affiliated with. That really should be sufficient to meet the requirements the law, but I will go an extra step sometimes to make it crystal clear that I am doing this for myself, not my brokerage, and I intend to make a profit as a result of my investment.
I hope that you have to meet this requirement because that means that you're your own client and, to be honest, you probably will never have a better one.
Discover how to become a licensed real estate agent in Washington State with our ultimate guide. From qualifications to step-by-step instructions, we've got you covered on your journey to a successful real estate career.
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