Michael, a real estate licensee, is interested in purchasing a condominium unit located at #101-789 Ocean Drive, Victoria. He plans to renovate it and then resell it for a profit. When making an offer on the property, what specific disclosure is Michael required to make?

Question: Michael, a real estate licensee, is interested in purchasing a condominium unit located at #101-789 Ocean Drive, Victoria. He plans to renovate it and then resell it for a profit. When making an offer on the property, what specific disclosure is Michael required to make?

Answer options:

• He must disclose his intention to flip the property to the seller after the Contract of Purchase and Sale is firm. ✅ He is required to disclose in writing that he is a licensed real estate professional and is acquiring the property for his personal benefit (interest in trade), before the seller accepts an offer.
• He only needs to disclose his licensee status if the seller's agent asks if he is a licensee.
• He must disclose his licensee status to the seller's agent, but not directly to the seller, as per privacy regulations.

Correct answer: He is required to disclose in writing that he is a licensed real estate professional and is acquiring the property for his personal benefit (interest in trade), before the seller accepts an offer.

Explanation: Real Estate Services Rules (Section 3-3, Disclosure of Interest in Trade) require a licensee to disclose in writing to the other party that they are a licensee and are acquiring an interest in the trade, before an agreement for the acquisition of an interest in real estate is entered into.