Brokerage Reminder: Keep it real with clients — bare your conflict of interest
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Many licensees have joined the ranks of speculators in today’s real estate market, reaping the benefits of flipping property for a quick profit. This highlights an important disclosure requirement: what if the broker or agent who owns or buys the property in the transaction also represents a client in the same transaction?
A conflict of interest exists when you, as a real estate agent representing a client in a transaction:
- also hold a direct or indirect ownership interest in the property being sold; or
- directly or indirectly purchase the property in the transaction.
This includes situations in which you own a partial ownership interest in a limited liability company (LLC) or other entity which owns or is buying, leasing or lending on the property.
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About The Author
Fernando Nunez
is first tuesday's in-house Broker Consultant. Fernando has over 20 years' experience in California real estate, including the single family residence sales, mortgage loan origination, investment properties and commercial leasing. Fernando assists the editorial staff with real estate writings and writes first tuesday's weekly Brokerage Reminder series.
