Minnesota State Real Estate Practice Test

What must a licensee disclose when advertising their own property?

1. Licensee's personal interests

2. Brokerage name and phone number

3. Status as a licensee

4. Previous sales history

The correct answer is: Status as a licensee

When advertising their own property, a licensee must disclose their status as a licensee to ensure transparency and maintain ethical standards in real estate transactions. This requirement serves to inform potential buyers that the individual promoting the property is a licensed real estate professional, thus highlighting any potential conflicts of interest and allowing consumers to make well-informed decisions. By disclosing their status, the licensee reinforces the principles of honesty and integrity in real estate practices. This is crucial because it helps to set appropriate expectations for buyers regarding the licensee's level of knowledge and experience in the market. Knowing that the person they are dealing with is a professional can significantly influence the buyer’s perception of the selling process. Other aspects, such as personal interests, brokerage details, and previous sales history, may not be legally required to be disclosed in the same way a licensee's status is. While being transparent with brokerage names can also be important, the immediate priority in advertising is ensuring that buyers understand the licensee’s professional status.