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Commission Check In - May 2021 |
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The Kansas Real Estate Commission prepared this email to provide an overview of common violations.
Question
According to the Kansas Real Estate Brokers’ and Salespersons’ License Act and the Kansas Real Estate Commission Rules and Regulations, which of the following are required to be disclosed in the purchase contract?
- John is a licensed salesperson and is assisting his daughter with the sale of her home. Does John have to disclose his relationship with the seller in the purchase contract?
- Jane is representing her aunt and uncle in the sale of their property. Does Jane have to disclose her relationship with the seller?
- Tina, a licensed salesperson, has listed and received an offer on a property owned by a Limited Liability Company (LLC) of which she is a member. Is Tina required to disclose in the purchase contract that she is a licensee with an interest in the property being sold?
- Michael, a licensed broker, is purchasing a property for himself. The transaction is not going through his brokerage. Is Michael required to disclose in the purchase contract that he is a licensee and will acquire an interest in the property?
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Answer
- Yes. K.A.R. 86-3-19(a) requires licensees to disclose in the purchase contract any interest the licensee’s immediate family member has in the real estate being sold. Immediate family member is defined as spouse, parent, child, or sibling.
- No. Aunts and uncles are not included in the definition of immediate family members in K.A.R 86-3-19(b).
- Yes. Tina has an interest in the property through her LLC and must disclose a licensee has an interest in the property being sold. See K.S.A. 58-3035(i) and 58-3062(a)(15).
- Yes. Michael must disclose in the purchase contract that he is a licensee taking an interest in the property being purchased regardless of whether the transaction is being done through the brokerage. See K.S.A. 58-3062(a)(15).
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