What potential issue can arise when Broker A shows his cousin a property he has listed?

When Broker A shows his cousin a property he has listed, the situation raises the potential issue of undisclosed dual agency. This occurs because Broker A is representing the interests of both the seller (the property owner) and his cousin (the potential buyer) simultaneously.

In a real estate transaction, a broker has a fiduciary duty to provide loyalty and full disclosure to their clients. If Broker A does not disclose his familial relationship to the seller and the fact that he is also working with his cousin as a buyer, it creates a conflict of interest. The broker's obligation to both parties may compromise his ability to act in the best interests of each. Clients have the right to know if their broker is also representing the opposing party in a transaction, as it can affect negotiations, communication, and the overall integrity of the deal.

Therefore, the failure to disclose this relationship can lead to serious legal implications and disputes, particularly if either party feels that their interests were not adequately represented. This is why understanding the nuances of dual agency and the requirement for full disclosure is crucial in real estate practice.