What are the best practices for handling conflicts of interest in real estate negotiation?

1 Identify and disclose

The first step to handle conflicts of interest is to identify them as early as possible and disclose them to all relevant parties. This means informing your clients, your broker, and any other agents or professionals involved in the transaction about any potential or actual conflicts of interest that may affect your performance or judgment. You should also explain how you plan to manage the conflict and seek consent from your clients to proceed with the representation. By disclosing conflicts of interest, you can demonstrate transparency, honesty, and professionalism, and avoid accusations of misconduct or breach of fiduciary duty.

2 Avoid or limit dual agency

Dual agency is a common source of conflicts of interest in real estate negotiation, as it involves representing both the buyer and the seller in the same transaction. This can create a situation where the agent has conflicting loyalties and obligations, and may not be able to provide impartial advice or advocate for the best interests of either party. To avoid or limit dual agency, you should follow your state's laws and regulations regarding this practice, and obtain written consent from both parties before engaging in it. You should also consider referring one of the parties to another agent, or working with a designated or transactional agent who can assist you with the administrative aspects of the deal without providing representation.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?