Which situation would create a conflict of interest requiring disclosure to clients?
Correct Answer
C) The agent's spouse is interested in purchasing the client's property
When an agent's family member wants to purchase a client's property, this creates a direct conflict of interest between the agent's personal interests and fiduciary duties. Full disclosure and often written consent are required before proceeding.
Why This Is the Correct Answer
Option C is correct because when an agent's spouse wants to purchase a client's property, it creates a direct conflict between the agent's personal financial interests and their fiduciary duty to the client. Under TRESA and provincial regulations, this material conflict must be disclosed immediately to the client, typically requiring written consent before proceeding. The agent's ability to negotiate objectively, market effectively, and provide unbiased advice is compromised when their family stands to benefit from the transaction.
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