Under Massachusetts license law (254 CMR 3.00), a real estate licensee who acts as a principal in a transaction (buyer, seller, lessor, or lessee) must disclose in writing that they are a licensed broker or salesperson if they hold any direct or indirect ownership or economic interest in the property.

This rule is intended to protect the public from potential conflicts of interest and ensure transparency. The disclosure must be made in writing before entering into any binding contract.

Simply being asked (A) is not enough; disclosure is mandatory regardless.

Insurance coverage (B) is irrelevant.

Family members (D) may trigger disclosure if the licensee has an ownership/economic interest, but not merely because they lived there.

Correct answer: C.