A conflict of interest in real estate arises when an individual faces a potential decision in an official capacity from which they stand to benefit personally. This often necessitates the individual stepping down from one role to maintain ethical standards.
Dual agency occurs when a real estate agent represents both the buyer and seller in the same real estate transaction. This arrangement is subject to strict regulatory controls to manage potential conflicts of interest.
A net listing is a type of real estate agreement where the broker's commission is the surplus amount over an agreed-upon net price to the seller. This arrangement is illegal in some states due to potential conflicts of interest.
