An associate is acting for a buyer interested in a property owned by the associate's sibling. What type of conflict of interest is this, and what is the associate's obligation?

Question: An associate is acting for a buyer interested in a property owned by the associate's sibling. What type of conflict of interest is this, and what is the associate's obligation?

Answer options: ✅ It's a potential conflict of interest; the associate must disclose the relationship to the buyer in writing.

• It's not a conflict of interest as long as the associate acts in the buyer's best interest.
• This is an unavoidable conflict; the associate should refer the buyer to another associate.
• The associate only needs to disclose it verbally to the buyer, as it's a family matter.

Correct answer: It's a potential conflict of interest; the associate must disclose the relationship to the buyer in writing.

Explanation: RECA Rules, Section 44(c) requires a real estate associate to disclose any direct or indirect interest in a trade, including family relationships, to their client in writing. This relationship creates a potential conflict requiring disclosure.