The broker in this situation has a "conflict of interest" because they are both the broker and a partner in the partnership buying the property. This means the seller can back out of the sale without paying the brokerage commission. The broker must let the seller know about this conflict of interest when it first comes up.
These are questions that the above text answers:
1. What is the conflict of interest in this situation?
2. Why can the seller back out of the sale without paying the brokerage commission?
3. What role does the broker have in this situation?
4. What is the responsibility of the broker when they have a conflict of interest?
5. When should the broker inform the seller about the conflict of interest?
6. What is the consequence for the broker if they fail to disclose the conflict of interest?
7. How does the broker's partnership in buying the property affect the sale?
8. Can the seller still proceed with the sale if the broker has a conflict of interest?
9. What is the significance of the broker being both the broker and a partner in the partnership?
10. What action should the broker take when they first become aware of the conflict of interest?