A real estate broker, Marc, has a potential buyer client, Ms. Chen, who is very interested in an income property in Trois-Rivières. Marc also owns a property next door to the one Ms. Chen is considering and is thinking of selling it himself in the near future. What ethical consideration applies to Marc in this situation?

Question: A real estate broker, Marc, has a potential buyer client, Ms. Chen, who is very interested in an income property in Trois-Rivières. Marc also owns a property next door to the one Ms. Chen is considering and is thinking of selling it himself in the near future. What ethical consideration applies to Marc in this situation?

Answer options: ✅ Marc must disclose his ownership of the adjacent property to Ms. Chen and offer her the option to terminate his representation, to avoid a conflict of interest.

• Marc should advise Ms. Chen to consider his property, as he can offer her a special deal without a commission.
• Marc is not obligated to disclose his ownership as long as he doesn't actively try to sell his property to Ms. Chen.
• Marc must prioritize Ms. Chen's interests and forget about selling his own property until she has completed her transaction.

Correct answer: Marc must disclose his ownership of the adjacent property to Ms. Chen and offer her the option to terminate his representation, to avoid a conflict of interest.

Explanation: Article 3.6 of the Rules of professional conduct of brokers states that a broker must avoid any situation that places them in a conflict of interest, and if such a situation arises, they must immediately disclose it to the parties and cease to act unless expressly agreed upon after receiving the disclosure.