What must a broker disclose if they have personal interest in a transaction?

A broker must disclose their interest or relationship with any parties involved in a transaction to ensure transparency and maintain ethical standards in real estate practices. This disclosure is essential because it protects all parties in the transaction by providing them with the full context of the broker's involvement. When a broker has a personal interest—such as being related to a party in the transaction or having a financial stake in the deal—it raises potential conflicts of interest. Complete disclosure of any personal interest helps prevent misunderstandings and fosters trust among clients.

This obligation aligns with the ethical guidelines set forth by real estate regulatory bodies, which promote honesty and integrity in the profession. Knowing a broker's personal connections can influence a client's decision-making process and allows them to evaluate the broker's advice in light of possible biases. Thus, disclosing such relationships is a crucial part of responsible real estate practice.