Question: If I’m an agent/builder and selling my own homes, do I have to disclose I’m an agent, and do I have to run the transaction through the Brokerage?
Answer: (5) when making an offer or solicitation to buy, sell, lease or rent real property as a principal, either directly or indirectly, or as an agent for a client, a licensee shall disclose in the initial contact with the other party the fact that the licensee holds a license with the division, whether the license status is active or inactive;
(6) prior to executing a binding agreement, disclose in writing to clients, agents for other parties, and unrepresented parties:(a) the licensee’s position as a principal in any transaction where the licensee operates either directly or indirectly to buy, sell, lease, or rent real property;
(b) the fact that the licensee holds a license with the division, whether the license status is active or inactive, in any circumstance where the licensee is a principal in an agreement to buy, sell, lease, or rent real property;
(c) the licensee’s agency relationship(s);
The proper form to use for this Disclosure is: form (18M which is the Disclosure of Interest Addendum), again disclosing the fact that you are a licensed Utah Real Estate Agent.
The second part of this question is do you have to run the transaction through the Brokerage? If the property is listed through the MLS then definitely yes. This is more of a Brokerage rule than an administrative one. Our KW rule is that because the Brokerage has liability and has to provide the E & O Insurance on every transaction, you do have to run your personal transactions through the Brokerage and pay the agreed upon Brokerage Fee. You should also disclose on your REPC’s that you represent yourself and Keller Williams. . And also remember that you cannot represent a Buyer as a Dual or Limited Agent when you are a Principal/Owner in any transaction. In this case you would use form 9 (Unrepresented Buyer Disclosure), or have another agent represent the Buyer.