What should an agent do if they identify a potential conflict of interest?

When an agent identifies a potential conflict of interest, the best course of action is to disclose it to all parties involved in the transaction. This approach is rooted in the principles of transparency and ethical behavior, which are fundamental to maintaining trust and integrity in agency relationships.

By disclosing the conflict, the agent ensures that all stakeholders are aware of the situation and can make informed decisions. This openness helps to protect the interests of all parties and mitigates any potential harm that might arise from the unresolved conflict. It also demonstrates the agent's commitment to ethical standards, reinforcing their credibility and professionalism in the eyes of clients and colleagues alike.

Letting all parties know about the conflict allows for discussions on how to manage it effectively. In some cases, parties might decide to proceed with the transaction while implementing measures to safeguard their interests, or they might choose to seek alternative arrangements if the conflict could unduly affect the outcome.

While consulting with colleagues for advice can be helpful, the primary responsibility lies with the agent to communicate any conflicts directly to those involved. Ignoring the conflict could lead to significant problems, including legal repercussions, erosion of trust, and damage to the agent's reputation. Similarly, avoiding future work with the client could be a drastic measure, depriving them of