What obligation does a licensee have to the seller when showing another company's listing?

A licensee showing another company’s listing has a critical obligation to disclose their agency relationship and any material buyer information. By informing the seller about the nature of their relationship with the buyer, the licensee ensures transparency and helps the seller make informed decisions.

In real estate transactions, the concept of agency is fundamental. The licensee is often representing the buyer and must communicate that to the seller. This ensures that the seller understands who the licensee is working for, allowing them to trust the process and stay informed. Moreover, sharing material buyer information—such as their level of interest and potential offer—can facilitate better negotiations and clarify intentions for both parties involved.

Other options focus on aspects like financial details, approval for showings, and confidentiality, but these do not capture the essential duty of disclosure that fosters a transparent and fair real estate process. Therefore, disclosing the agency relationship and material buyer information is paramount in maintaining ethical standards in real estate practices.