At what percentage must licensees disclose their interest in a transaction due to stock ownership?

At what percentage must licensees disclose their interest in a transaction due to stock ownership?

• A. 10%
• B. 25%
• C. 5%
• D. Any amount

Answer: (C)

The requirement for licensees to disclose their interest in a transaction due to stock ownership is set at 5%. This means that if a licensee owns 5% or more of a company involved in the transaction, they must disclose that ownership to ensure transparency and comply with ethical standards. This disclosure is aimed at preventing conflicts of interest and promoting trust in real estate transactions. Other percentages do not align with the established threshold set by regulations governing real estate practices. The 5% threshold is specifically designed to capture a significant enough stake that could influence the licensee’s decisions or actions related to the transaction, thus upholding the integrity of the industry.

The requirement for licensees to disclose their interest in a transaction due to stock ownership is set at 5%. This means that if a licensee owns 5% or more of a company involved in the transaction, they must disclose that ownership to ensure transparency and comply with ethical standards. This disclosure is aimed at preventing conflicts of interest and promoting trust in real estate transactions.

Other percentages do not align with the established threshold set by regulations governing real estate practices. The 5% threshold is specifically designed to capture a significant enough stake that could influence the licensee’s decisions or actions related to the transaction, thus upholding the integrity of the industry.