How should a broker manage conflicts of interest?

A broker should manage conflicts of interest by disclosing any potential conflicts to all parties involved and seeking their consent. This approach promotes transparency and ensures that all parties are informed about the broker's interests that may affect their judgment or actions. Disclosure allows clients to make informed decisions based on all relevant information, which is a fundamental principle of ethical conduct in brokerage practices.

By actively seeking consent, the broker demonstrates a commitment to professional integrity and the best interests of their clients. This collaborative approach also fosters trust and maintains the broker's credibility in the eyes of clients, as they are willing to be open and honest about any factors that could influence their decisions. This is particularly critical in the real estate industry, where clients rely heavily on their broker's expertise and guidance.

In contrast, simply ignoring personal gains, prioritizing one's own interests, or making unilateral decisions without consultation do not align with ethical standards and could lead to a breakdown of trust between the broker and their clients. These approaches could result in misunderstandings, disputes, or even legal repercussions, thus highlighting the importance of proper conflict management through disclosure and consent.