What could indicate a conflict of interest in an in-house transaction?

In an in-house transaction, a conflict of interest arises when the broker represents multiple clients with potentially competing interests in the same deal. This situation can lead to divided loyalties, as the broker may find it challenging to prioritize the needs and interests of one client over another. It undermines the broker's ability to provide impartial advice and can influence the fairness of negotiations or outcomes for each party. Therefore, having a broker involved with multiple clients in the same transaction is a clear indicator of a conflict of interest.

In contrast, the presence of close friendships between buyer and seller, while it can complicate personal dynamics, does not inherently mean that professional obligations are compromised. Signed documentation indicates that all parties agree to the terms and may not suggest any conflict. Lastly, misleading advertisements relate more to ethical marketing practices rather than to a direct conflict of interest in representation.