Question 64

A broker who has listed a property for sale cannot legally purchase the property.

A broker who has listed a property for sale is prohibited from purchasing that property themselves due to conflicts of interest and ethical standards in real estate practices.

A) be the seller's agent only.

This option is incorrect because a broker can legally act as the seller's agent. Being the seller's agent is a common role for brokers when they have a listing, as they represent the interests of the seller in the sale process.

B) become a dual agent.

This option is also incorrect. While dual agency is a legal practice in certain jurisdictions, it does require full disclosure and consent from both parties. A broker can serve as a dual agent if properly disclosed and agreed upon, thus it is not a legal prohibition.

C) purchase the property.

This option is correct as it highlights a significant ethical and legal restriction. A broker who has listed a property for sale cannot legally purchase that property to avoid conflicts of interest, ensuring that the interests of the seller are prioritized without personal gain interfering.

D) represent the buyer only.

This option is incorrect as well. A broker can represent a buyer in a transaction, provided that there is no conflict with their obligations to the seller. They may represent both parties if they have not listed the property for sale.

Conclusion

The prohibition against a broker purchasing a property they have listed is crucial for maintaining ethical standards and avoiding conflicts of interest in real estate transactions. Options A, B, and D do not present legal restrictions on the broker's ability to act in their roles, while Option C directly addresses the ethical conflict inherent in a broker buying a listed property, making it the definitive correct answer.