If a buyer intends to operate a home-based business and informs the licensee, the licensee should

• A. The licensee should have ascertained whether the property could be used for that purpose
• B. The licensee should arrange financing
• C. The licensee should disregard the buyer's plans
• D. The licensee should tell the seller first

Answer: (C)

The main idea is to verify whether a property can be used for a home-based business before moving forward. When a buyer plans to run a business from home, the licensee should determine if the property is legally and practically suitable for that use. This involves checking zoning to see if home occupations are allowed, any homeowner association covenants or deed restrictions, and any city or county rules that limit business activity in residential areas. The licensee should help the buyer obtain official confirmations or guidance from the planning department, review parking and driveway access, signage rules, and any permit or licensing requirements that might be needed. This due diligence helps the buyer avoid pursuing a property that cannot support the intended business and informs negotiations.

Financing is not the licensee’s duty, so arranging financing isn’t appropriate. Simply disregarding the buyer’s plans ignores the client’s objectives and reduces the level of service. Telling the seller first would breach confidentiality and the licensee’s duty to protect the client's interests.