When a license holder represents a seller, to whom must they disclose that fact?

Prepare for the TREC Sales Agent Exam. Study with multiple choice questions and flashcards, complete with hints and detailed explanations. Get ready for your test!

When a license holder represents a seller, they are required to disclose this relationship to any potential buyers, tenants, or their broker's agents. This obligation stems from the principles of transparency and fair dealing in real estate transactions. The disclosure ensures that all parties involved are aware of the license holder's relationship with the seller, which is crucial for maintaining ethical standards and legal compliance in transactions.

By informing potential buyers or their agents, the license holder helps to prevent any misunderstandings or misrepresentation regarding whose interests are being prioritized in the transaction. This not only upholds the integrity of the real estate profession but also protects the interests of all parties involved by fostering an environment of honesty and clarity.

It's important to note that while the seller is entitled to know that their agent is working on their behalf, the duty to disclose this relationship primarily extends to potential buyers and other relevant parties in the transaction. This ensures all involved have the necessary information to make informed decisions.

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