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Brokerage Standards Manual

Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.Notice of Change: Information in this manual changed when new agency and disclosure rules came into effect on June 15, 2018. Learn more about the new rules.

General Brokerage Procedures

3. Conflicts

(a) Trading Services

Whenever a licensee attempts to act for more than one party involved in the same trade in real estate, a conflict arises. Please note the ban on dual agency in section 5-16 of the Rules, the very limited exception to that ban in section 5-17 of the Rules, and section 5-18 of the Rules regarding addressing conflicts of interest for multiple clients. For a discussion of this issue please see PSM topics “Conflicts respecting current clients” and “Conflicts respecting former clients.”

A conflict of interest can also arise where the licensee’s interests are in conflict with the client’s interests. An example of this type of conflict is where the licensee engaged by a brokerage wishes to buy a property listed for sale by the brokerage. Under brokerage agency (see description of brokerage agency under the next heading), because all licensees within the brokerage are the agents of the seller whose property is listed for sale with the brokerage, the conflict of interest arises if the licensee is purchasing a listing where they have personally signed the listing contract or where the listing contract is one entered into by another licensee in the brokerage.

If, under brokerage agency, a licensee engaged by the brokerage is considering taking a substantial professional risk and making an offer to buy their own listing or any property listed with the brokerage, please refer to the conflict of interest articles in the February and June 2008 Report from Council newsletters.

This conflict may not exist under designated agency if the other party is able to obtain independent representation through their own designated agent, and if the client’s confidential information has not been and will not be shared with the licensee who is acquiring, or disposing of the real estate or a licensee who is representing that licensee.

 

[updated 06/15/2018]