Mr. Mark Johnson, a licensed team lead for 'Prestige Homes Team' at XYZ Realty, intends to purchase an investment property at 123 Oak Street, Vancouver. The seller, Ms. Lena Kim, is an unrepresented party. What specific disclosure is Mr. Johnson required to provide to Ms. Kim before presenting an offer?

Question: Mr. Mark Johnson, a licensed team lead for 'Prestige Homes Team' at XYZ Realty, intends to purchase an investment property at 123 Oak Street, Vancouver. The seller, Ms. Lena Kim, is an unrepresented party. What specific disclosure is Mr. Johnson required to provide to Ms. Kim before presenting an offer?

Answer options: ✅ He must provide the 'Disclosure of Risks to Unrepresented Parties' form and the 'Disclosure of Interest in Trade' form.

• He only needs to inform Ms. Kim verbally that he is a licensee purchasing for himself.
• He must suggest Ms. Kim seek independent legal advice but requires no specific disclosure form.
• He must present the 'Disclosure of Representation in Trading Services' form, acknowledging Ms. Kim is unrepresented.

Correct answer: He must provide the 'Disclosure of Risks to Unrepresented Parties' form and the 'Disclosure of Interest in Trade' form.

Explanation: When a licensee trades in real estate on their own behalf, they must provide a Disclosure of Interest in Trade form to the other party. Additionally, if the other party is unrepresented, the licensee must provide the Disclosure of Risks to Unrepresented Parties form, as per BCFSA Rules.