A broker must provide a client with a "written affiliated business arrangement disclosure" when referring them to a business that pays the broker for their referral. This is necessary to avoid a "conflict of interest" which occurs when the broker has a personal or professional relationship with the other party involved in the transaction or has an ownership stake in the property.
These are questions that the above text answers:
1. What is a "written affiliated business arrangement disclosure"?
2. When is a broker required to provide a client with a "written affiliated business arrangement disclosure"?
3. Why is it important for a broker to provide a "written affiliated business arrangement disclosure"?
4. What is a conflict of interest in the context of real estate transactions?
5. When does a conflict of interest occur for a broker?
6. What is the purpose of avoiding a conflict of interest in business referrals?
7. What is the role of the broker in avoiding a conflict of interest in business referrals?
8. What is the significance of a personal or professional relationship between the broker and the other party involved in the transaction?
9. What is the significance of the broker having an ownership stake in the property?
10. How does providing a "written affiliated business arrangement disclosure" help in avoiding a conflict of interest?