An owner who lives out of state contacts a licensee who is in the state where the owner's property is located. The owner hires the licensee to sell the property for $160,000. The licensee realizes that the land is in an area that has recently been rezoned for a higher use. The licensee decides to buy the property, and informs the owner. After purchasing the property and, 3 weeks later, the licensee sells the same property for $175,000. Which of the following statements about this situation is correct?

While it is true that licensees must comply with state laws regarding real estate transactions, this statement does not address the specifics of the scenario. The licensee is acting as an agent for the owner, but the critical issue here is the failure to disclose material information rather than the legality of acting for an out-of-state owner.

There is no legal requirement for the licensee to inform the owner of the selling price after the property is sold, as the transaction is between the licensee and the buyer. The obligation to disclose pertains primarily to material facts affecting the property prior to the sale.

Informing the owner of the intent to purchase does not absolve the licensee of their duty to disclose material facts such as the impact of rezoning. The failure to provide this crucial information renders the licensee's actions improper and could lead to legal consequences.