Licensees shall be familiar with and able to explain generally the terms of all forms in use by Firm. Any blanks to be filled in on standard forms must be done only at the direction of the client and in the manner dictated by the client. Licensees shall not advise clients or customers on whether a particular agreement or term is enforceable, whether they have the right to rescind an agreement or otherwise can take legal action against someone. Licensees must not attempt to apply specific factual circumstances to legal principles in order to solve, or suggest a solution to, a legal problem or question. In such circumstances, the Licensee should explain that he or she is not qualified to give legal advice and recommend the client or customer seek private legal counsel. The Licensee shall report any request for such advice to Firm immediately and document by letter to the client or customer that the client was advised to seek legal counsel. No Licensee will advise any client or customer on tax laws or regulations or any tax liability or advantage resulting from the sale or purchase of real property. Licensees shall furnish copies of any listing, sale, lease, earnest money receipt, or other contract relevant to a real estate transaction to all signatories at the time of execution and shall maintain close contact with their principals throughout the duration of the representation. Licensee as Principal Licensees may engage as principals in real estate transactions only under Firm’s supervision and then only following advance written permission from the designated broker. Licensees shall notify Firm of their intent to purchase, sell, or lease real property for their own account prior to entering into any purchase agreement or lease, or offering property for sale or lease. Any compensation to Firm, or the Licensee, as a result of a personal transaction shall be in accord with the Licensees’ ICA. Washington law requires full disclosure of a Licensee’s status as a real estate licensee in any transaction where a Licensee buys, sells, or leases, directly or through a third party, any interest in real property. To that end, Licensees shall disclose that they are Washington real estate licensees at the first contact with any prospective seller, buyer, lessor, or lessee, or such party’s agent. Licensees shall state clearly in any disclosure of agency that the Licensee is representing only his or her own interests and is not acting as an agent for the other party nor for Firm in the personal transaction. Licensee understands that Firm’s errors and omissions insurance coverage may not cover either Licensee’s or Firm’s activities in such transactions. Accordingly, Licensee shall indemnify, defend and hold Firm harmless from and against all claims, liability, losses, costs and damages (including reasonable attorney fees) arising out of or in any way connected with any such transaction in which Licensee is involved as a principal. If the Licensee is purchasing property listed with Firm, Licensee shall disclose in full any involvement with the property prior to the offer to purchase and expressly disclose any information gained as a result of the involvement. If the Licensee intends to purchase
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