Question

Which of the following would result in a conflict of interest for which the licensee could be disciplined by the NCREC?

A. an agent working for the buyer notifies the listing agent that the buyer is their sister
B. a licensee notifies the listing agent that they are self-representing and are interested in purchasing the listing
C. a sub-agent to the seller assists their sister in the purchase of a home but keeps the information confidential because they are representing the seller
D. an agent working as a sub-agent of the seller notifies the seller of confidential information the buyer shared

Answer 1

The scenario representing a conflict of interest that could result in discipline by the NCREC is when a sub-agent to the seller assists their sister in the purchase of a home while keeping it confidential due to their representation of the seller.

Step-by-step explanation:

The scenario that would result in a conflict of interest for which the licensee could be disciplined by the North Carolina Real Estate Commission (NCREC) is: C. a sub-agent to the seller assists their sister in the purchase of a home but keeps the information confidential because they are representing the seller.

This situation involves a breach of the duty of loyalty and disclosure that a licensee owes to their client. The agent is putting their personal interests (helping a family member) ahead of their professional obligation to the seller, which can lead to biased representation and potential harm to the seller's interests. The agent must disclose all pertinent information to their client, including personal relationships that could influence how they handle the transaction.

In contrast, situations A, B, and D do not inherently involve a conflict of interest because they either involve proper disclosure (A and B) or proper representation of the client's interests (D).