Sometimes situations occasionally arise that test the ethics and professionalism of a broker. Let's imagine the following scenario: John is simultaneously representing the seller, Smith, and the buyer, Jones, in a transaction. Smith asks Juan to prepare a Broker Price Opinion (BPO) for him. Since Juan represents both parties, what would be the best way to act for the benefit of both clients?

Dilemmas and Options for Juan

Juan could consider the following alternatives:

• Treat the BPO as strictly confidential information of Smith, without disclosing it to Jones.
• Ask for Smith's consent to share the BPO with Jones.
• Choose to prepare two different BPOs, offering an opinion adapted to each of your clients.
• d. Decide not to carry out the BPO, to avoid any possible conflict or misunderstanding.

The Best Alternative

The most appropriate option in this scenario is for Juan should do two separate BPOs, one designed for Smith's needs and expectations and another for Jones.

The reasoning behind this decision is clear: by acting as a broker for both parties, Juan has the responsibility of looking after the interests of both clients. If you were to conduct a single BPO and share it with both parties, you could face a conflict of interest. By offering two different BPOs, Juan ensures that each client receives an opinion that reflects their best interests.

Final thoughts

Dual representation in the real estate sector entails a series of challenges that require careful and ethical management by the broker. In Juan's case, by choosing to offer two different BPOs, he demonstrates a firm commitment to fairness and integrity, ensuring that both clients are treated with fairness and professionalism. This is a clear example of how responsibilities should be managed in the real estate world.