PSI Oklahoma Real Estate Practice Test

Under which condition must A, a licensed real estate broker, reveal her license status?

1. When involved in any real estate transaction

2. Only during property showings

3. When participating in a real estate seminar

4. When asked by a friend

The correct answer is: When involved in any real estate transaction

The requirement for a licensed real estate broker to disclose her license status during any real estate transaction is rooted in the principles of transparency and consumer protection. This obligation ensures that all parties involved in a real estate transaction are aware of the broker's professional credentials and can thus evaluate the legitimacy of the services being provided. In real estate transactions, it's essential for buyers, sellers, and any relevant parties to know who they are dealing with. By revealing her license status, A is fulfilling her duty to maintain honesty and build trust with clients and consumers. This practice also helps prevent misrepresentation and discourages fraud within the industry. The other options present scenarios where license disclosure may not be explicitly required. During property showings, while it's good practice to disclose this information, it is not mandated like it is in an actual transaction. Participation in a real estate seminar does not directly engage the broker in a transaction context, and thus may not necessitate a disclosure of license status. Similarly, revealing this information only upon request from a friend does not align with the broader obligation brokers have when engaging in any real estate activity. Hence, the most comprehensive and appropriate condition for disclosure is during real estate transactions.