Question

Which of the following would NOT be defined as a conflict of interest?

Select one:
a. The broker is representing her sister
b. The buyer's broker sits on the planning board and they are drafting new zoning
c. The buyer wants to keep prices low (which would result in a lower commission for the buyer's broker)
d. All of these are a conflicts of interest

Answer 1

The buyer wanting to keep prices low, while affecting the broker's commission, doesn't create a conflict of interest since it doesn't pit the broker's personal interests against their professional duties. Hence, this scenario is not a conflict of interest.

Step-by-step explanation:

A conflict of interest in a business context occurs when an individual's personal interests could influence their professional decisions in a way that is contrary to the interests of their clients or the organization they work for. Evaluating the options given:

• The broker representing her sister could lead to biased decisions in favor of her sister, hence it's a conflict of interest.
• A buyer's broker sitting on the planning board could be influenced to make decisions that benefit themselves or their clients, which is a conflict of interest.
• The buyer wanting to keep prices low is a clear goal in a transaction, but it isn't necessarily a conflict of interest since lower prices don't inherently create a situation where the broker's personal interests conflict with their professional duties.

Therefore, the scenario that would NOT be defined as a conflict of interest is c. The buyer wants to keep prices low, which could result in a lower commission for the buyer's broker, but doesn't create a conflict between the broker's personal and professional interests.