A licensee takes a listing from his sister. He should:

• A. Disclose the relationship if acting as a dual agent
• B. Ignore the relationship
• C. Increase the commission
• D. Terminate the listing

Answer: (A)

Disclosing any relationship that could affect loyalty and impartiality is essential in agency work. When a licensee takes a listing from a sister, there’s a potential for bias and questions about self-dealing, especially if the licensee might also represent the buyer in the same transaction (dual agency). In that scenario, the licensee must fully disclose the familial relationship and obtain informed, written consent from the parties before proceeding. This protects everyone’s interests and keeps the duties of honesty and disclosure front and center. Ignoring the relationship could breach fiduciary duties and create risk; altering the commission isn’t a legitimate solution, and terminating the listing just because of the relationship isn’t required by policy.