Final answer:
Agent Alfie, who initially represents Seller Jerome, might become a dual agent if Buyer Bo is interested in Jerome's property. Alfie must disclose the agency shift and obtain both parties' consent, ensuring that he maintains his duties and balances the interests of both clients.
Step-by-step explanation:
The scenario describes a potential conflict of interest within real estate agency relationships. When Agent Alfie represents both Seller Jerome and Buyer Bo, initially as a seller's agent and then as a buyer's agent, this scenario creates a situation known as dual agency. In a dual agency situation, one agent represents both the seller and the buyer in a real estate transaction, which has to be agreed upon by both parties and is regulated by state laws. Since Bo, who was initially a buyer for a different property, expresses interest in Jerome's property, which Alfie is selling, Alfie would potentially shift from being a seller's agent to a dual agent.
Agency shifts in real estate can affect the obligations and duties an agent owes to their clients. It's essential for the agent to disclose this change in the relationship to both parties and to obtain their informed consent. Furthermore, Alfie must ensure that confidential information is not disclosed inappropriately and that he acts in the best interests of both clients, which may involve balancing those interests carefully.