All of the following statements are true except: which is false?

• A. A broker is free to advertise his principal residence for sale as a private party.
• B. A broker must disclose agency relationships in a transaction.
• C. A license is required to perform real estate services for compensation.
• D. A licensee must be supervised by a broker.

Answer: (A)

In Michigan real estate practice, advertising and disclosure rules protect the public by making agency relationships and licensure clear. A licensee must disclose who represents whom in any transaction and must identify their licensed status in advertising. They may not perform real estate services for compensation without a license, and licensees, such as salespeople, must operate under the supervision of a broker. The assertion that a broker can advertise his principal residence for sale as a private party is not correct because, as a licensed professional, any advertising related to real estate must reveal that you are a licensed broker and indicate the agency relationship. The other statements are accurate: agency relationships must be disclosed, a license is required to provide real estate services for compensation, and a licensee must be supervised by a broker.