A buyer client is interested in a property. Her salesperson, who represents her under a buyer representation agreement, also has a personal financial interest in the property. Under TRESA 2023, what is the salesperson's ethical and legal obligation?

Question: A buyer client is interested in a property. Her salesperson, who represents her under a buyer representation agreement, also has a personal financial interest in the property. Under TRESA 2023, what is the salesperson's ethical and legal obligation?

Answer options:

• To advise the buyer that the salesperson's interest means the property is a good investment.
• To immediately terminate the buyer representation agreement without further action. ✅ To disclose their personal interest in writing to the buyer and recommend independent legal advice, and only proceed with the client's express written consent.
• To avoid disclosing the personal interest as it might prejudice the buyer's decision.

Correct answer: To disclose their personal interest in writing to the buyer and recommend independent legal advice, and only proceed with the client's express written consent.

Explanation: Under TRESA 2023, registrants with a personal financial interest in a transaction must disclose this interest in writing to their client, recommend independent legal advice, and obtain the client’s informed written consent before proceeding to protect against conflicts of interest.