In a large commercial real estate firm, different agents on the same team may represent competing tenants looking for the same type of space. What ethical obligation does the firm have?
Correct Answer
D) The firm must disclose the situation to all affected clients and obtain informed consent before continuing representation
When a firm represents competing clients, a potential conflict of interest exists. The firm must disclose the situation to all affected parties and obtain informed consent. Each client is entitled to know that the firm is also representing a competitor.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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