An associate, Michael, is working with a buyer client who expresses interest in a property that Michael's spouse owns. What is the primary disclosure Michael must make to his buyer client?

Question: An associate, Michael, is working with a buyer client who expresses interest in a property that Michael's spouse owns. What is the primary disclosure Michael must make to his buyer client?

Answer options: ✅ Michael must disclose his relationship with the seller (his spouse) in writing and obtain the buyer's consent to continue acting for them.

• Michael must advise his client to work with a different associate due to the familial relationship.
• Michael is only required to disclose his relationship if his spouse is also licensed.
• Michael can proceed without disclosure as long as his spouse is not explicitly involved in the transaction.

Correct answer: Michael must disclose his relationship with the seller (his spouse) in writing and obtain the buyer's consent to continue acting for them.

Explanation: RECA Rules Section 55(1) requires a real estate professional to disclose in writing to a client if they or their associate are purchasing or have a direct or indirect interest in the property. A spouse's ownership constitutes an indirect interest requiring disclosure and written consent.