An agent who is also a licensed contractor buys a fixer-upper listed with the agent's own brokerage, intending to renovate and resell at a profit. The agent fully discloses the personal interest to the seller before making the offer. What has the agent done to address the conflict?
Correct Answer
A) Made the required disclosure to manage the conflict of interest
By fully disclosing the personal interest, the agent has taken the required step to manage the conflict. An agent may purchase a listed property if the personal interest is disclosed.
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A dual agent learns that the buyer will pay more than the listed price but tells the seller this information to help the seller negotiate a higher price. Which fiduciary duty to the buyer has the dual agent violated?
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All of the following are potential consequences of undisclosed dual agency EXCEPT