A broker has been hired by a buyer to find an investment property. Upon locating a suitable property listed by another firm, the broker MUST:
Under 49 Pa. Code 35.311 (Duties of Buyer's Agent), a buyer's agent must disclose their relationship to the listing broker or seller before providing substantive services.
This ensures that all parties understand who represents whom in the transaction.
Failure to disclose agency relationships could result in ethical violations and penalties from the Pennsylvania Real Estate Commission.
Why the other answers are incorrect:
Option A (Initiate a Title Search): This is typically done by the buyer's attorney or title company, not the real estate broker.
Option B (Recommend an Inspection): While good practice, it is not legally required under agency law.
Option C (Disclose Dual Representation): This is incorrect because the broker is not acting as a dual agent in this case.
49 Pa. Code 35.311 -- Duties of Buyer's Agent
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