John, a real estate licensee, lists his own residential property for sale without immediately disclosing to his brokerage that he is the seller. He then receives an offer from a buyer client of another licensee within his brokerage. John accepts the offer and discloses his personal interest to the buyer only in the Contract of Purchase and Sale, just before signing. Has John violated any BCFSA Rules?

Question: John, a real estate licensee, lists his own residential property for sale without immediately disclosing to his brokerage that he is the seller. He then receives an offer from a buyer client of another licensee within his brokerage. John accepts the offer and discloses his personal interest to the buyer only in the Contract of Purchase and Sale, just before signing. Has John violated any BCFSA Rules?

Answer options:

• No, John adequately disclosed his personal interest before the contract was legally binding on the buyer.
• Yes, John violated BCFSA Rule 3-3(1)(k) by not disclosing his personal interest to the buyer promptly.
• Yes, John violated BCFSA Rule 3-3(1)(j) by not advising the buyer to seek independent legal advice due to his personal interest. ✅ Yes, John violated BCFSA Rule 3-2(g) by failing to promptly disclose his personal interest as a seller to his managing broker.

Correct answer: Yes, John violated BCFSA Rule 3-2(g) by failing to promptly disclose his personal interest as a seller to his managing broker.

Explanation: BCFSA Rule 3-2(g) requires a licensee to promptly disclose to the managing broker any personal interest, direct or indirect, that the licensee has in a real estate transaction. Disclosing only at the time of signing the contract does not meet the 'promptly' requirement for his own brokerage.