How can brokers address potential conflicts of interest?

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Brokers can effectively address potential conflicts of interest by disclosing them to clients and obtaining written consent when necessary. This practice fosters transparency and helps build trust in the broker-client relationship. By informing clients about any potential conflicts, brokers allow clients to make informed decisions and understand how such conflicts may affect the services they receive.

Disclosures can encompass various scenarios, such as when a broker represents both the buyer and the seller in a transaction (dual agency) or has a financial interest in ancillary services being offered. When clients are equipped with this information, they can provide informed consent regarding how they wish to proceed, which is essential for maintaining ethical standards in brokerage practices.

This approach not only complies with regulatory requirements but also aligns with a commitment to ethical practices, ensuring that clients feel secure and confident in the representation they receive.

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