What must a Realtor do when suggesting a business in which they have an ownership interest?

When a Realtor suggests a business in which they have an ownership interest, it is essential for them to disclose that ownership interest to their clients. This requirement is rooted in ethical considerations and is enforced by various real estate regulations, including the Code of Ethics set forth by the National Association of Realtors. The disclosure serves to inform the client of any potential conflicts of interest, allowing them to make fully informed decisions without being misled about the Realtor's motivations.

By revealing their ownership interest, the Realtor maintains transparency and builds trust with the client. Clients have the right to know if the Realtor stands to benefit personally from the recommendation, which could influence the objectivity of that suggestion. This practice not only aligns with ethical standards but also complies with legal obligations, ensuring that clients are treated fairly and with respect.

In this context, the emphasis on transparency and good faith in real estate transactions underscores the importance of full disclosure to protect both the client and the integrity of the profession.