An associate, Michael, holds a real estate licence in Alberta. He is approached by his cousin, Emily, who wants Michael to help her sell her condominium in Edmonton. Michael agrees, and they sign an exclusive seller representation agreement. What must Michael disclose to Emily before entering into this agreement?

Question: An associate, Michael, holds a real estate licence in Alberta. He is approached by his cousin, Emily, who wants Michael to help her sell her condominium in Edmonton. Michael agrees, and they sign an exclusive seller representation agreement. What must Michael disclose to Emily before entering into this agreement?

Answer options:

• That Emily will need to secure her own legal counsel for the transaction. ✅ His personal relationship with Emily and obtain her written acknowledgement of this disclosure.
• The commission rate charged by other brokerages in Edmonton.
• His own personal financial situation to assess any potential conflicts of interest.

Correct answer: His personal relationship with Emily and obtain her written acknowledgement of this disclosure.

Explanation: RECA Rules require a licensee to disclose any personal interest they have in a transaction, including family relationships, to their client and obtain written acknowledgment of that disclosure to avoid potential conflicts of interest.