Final answer:
A broker's non-disclosure of membership in a corporation buying listed property could result in a voidable contract due to a breach of the broker's fiduciary duty to disclose any conflict of interest in a real estate transaction.
Step-by-step explanation:
If a broker does not disclose his membership in a corporation that is buying property listed with the broker, the purchase contract is potentially voidable. This arises from the legal obligation for brokers to disclose any conflict of interest when acting as an agent in a property transaction. Non-disclosure of such an interest is a breach of ethical duties and can lead to the contract being declared invalid if the undisclosed information would have influenced the seller's decision to sell.
Breach of fiduciary duty in real estate can lead to severe consequences for the broker, including legal action and loss of license. In this case, the broker would have a fiduciary duty to act in the best interest of the client, which would include disclosing any personal interests that may affect the transaction. Trust and transparency are paramount in any agency relationship, especially in high-value transactions like buying or selling property.