Final answer:
The greatest risk when assisting family in real estate transactions is conflict of interest. It's essential to disclose the relationship and maintain professionalism. Written acknowledgements help mitigate risks of impropriety.
Step-by-step explanation:
The greatest risk when a licensee assists a family member with the purchase of real property is the potential for conflict of interest. This situation could lead to unfair advantage or decisions being made that are not in the best interest of all parties involved. When engaging in transactions with family members, disclosure of the relationship to all parties involved is crucial. Moreover, ensuring professionalism and adherence to ethical standards is paramount to maintain trust and avoid any legal repercussions.
Maintaining objectivity can be challenging when assisting a family member, as personal emotions and desires might clash with professional duties. Licensees must navigate the dual roles carefully, avoiding any action that could compromise their professional integrity or the fairness of the transaction. It is advisable to secure written acknowledgement from all parties about the familial relationship and the potential impact on the transaction to safeguard against any accusations of impropriety.