A licensed real estate associate, Sarah, is representing a buyer client in the purchase of a residential property. Sarah's brokerage also has a listing agreement for the property, represented by another associate, Mark. What is the minimum standard disclosure Sarah must make to her buyer client regarding this relationship?

Question: A licensed real estate associate, Sarah, is representing a buyer client in the purchase of a residential property. Sarah's brokerage also has a listing agreement for the property, represented by another associate, Mark. What is the minimum standard disclosure Sarah must make to her buyer client regarding this relationship?

Answer options: ✅ Sarah must disclose the brokerage's existing listing agreement to the buyer client in writing as soon as practicable.

• Sarah is not required to disclose the brokerage's listing agreement as long as she maintains confidentiality.
• Sarah only needs to disclose if she personally knows Mark.
• Sarah must advise her client to seek independent legal advice if a dual agency situation arises.

Correct answer: Sarah must disclose the brokerage's existing listing agreement to the buyer client in writing as soon as practicable.

Explanation: RECA Rules Section 53(1) requires a real estate professional to disclose in writing as soon as practicable if their brokerage has a relationship with another party to the transaction. This ensures the client is aware of any potential conflict of interest arising from the brokerage representing both sides.