California Real Estate Practice Exam

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Broker A lists a property for sale that he eventually becomes interested in buying. In order to satisfy the NAR code of ethics, he should

buy the property anonymously
disclose in writing to the owner that he is interested in buying the property
withdraw the listing from the market
advise the owner to seek independent valuation

The correct answer is: disclose in writing to the owner that he is interested in buying the property

In this scenario, Broker A has a conflict of interest as he is the listing agent for the property and also wants to buy it. Option A of buying the property anonymously would not satisfy the NAR code of ethics as it does not disclose the conflict of interest. Option C of withdrawing the listing from the market may also not satisfy the code of ethics as it does not fully address the conflict of interest. Option D of advising the owner to seek independent valuation does not address the fact that Broker A is interested in buying the property. Therefore, the best option would be to disclose in writing to the owner that Broker A is interested in buying the property, as it is the most transparent and ethical solution.