Reviewed November 2019
The seller of the home has an inactive real estate license. The seller wants to advertise the home for sale as “for sale by owner” (“FSBO”). Does the seller have to disclose in the FSBO advertising that the seller is an inactive real estate licensee?
Yes. A.A.C. R4-28-502 (B) requires that a real estate licensee advertising a FSBO home has to disclose the real estate licensee’s status. The only reason for this rule is to let the public know that the seller of the home has a sophisticated real estate background. Although the real estate licensee’s status currently may be inactive, the real estate licensee has acquired a sophisticated real estate background. Therefore, an inactive real estate licensee must disclose in any advertising of the home the status of an inactive licensee.