Scenario 32: A licensee is asked by a buyer client to prepare an offer to purchase a property where the licensee has a financial interest. What is the licensee's FIRST obligation?

Question: Scenario 32: A licensee is asked by a buyer client to prepare an offer to purchase a property where the licensee has a financial interest. What is the licensee's FIRST obligation?

Answer options:

• Advise the buyer to seek independent legal advice. ✅ Disclose the nature and extent of the licensee's interest in writing to the buyer.
• Refuse to prepare the offer due to a conflict of interest.
• Obtain consent from the seller to proceed with the transaction.

Correct answer: Disclose the nature and extent of the licensee's interest in writing to the buyer.

Explanation: Before taking any further steps, the licensee must first disclose their financial interest in writing to the buyer, as required by RESA. This ensures transparency and allows the buyer to make an informed decision. The correct answer is "Disclose the nature and extent of the licensee's interest in writing to the buyer.". This capacity-fill scenario 32 reinforces the same competency for the bc-real-estate bank and follows the certified explanation standard.