Which situation is least likely to represent a conflict of interest?

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Study for the Arizona Real Estate Exam. Boost your knowledge with flashcards and multiple choice questions with explanations. Be exam-ready with our comprehensive review!

A disclosed dual agent is a real estate professional who has agreed to represent both the buyer and the seller in a transaction. This arrangement can create potential conflicts of interest since the agent must balance the interests of both parties. However, through disclosure, the agent informs both clients about this dual representation, thereby mitigating some of the concerns.

In this scenario, the dual agency is recognized and transparent, allowing the clients to make informed decisions regarding their representation. This eliminates the element of hidden motives or lack of transparency that often characterizes a true conflict of interest. The clarity provided by the disclosure is key in ensuring that the clients are aware of the possible implications of dual representation.

In contrast, the other scenarios presented potentially involve conflicts of interest without the same level of transparency. For instance, a buyer's agent having their commission tied to the home's sale price might motivate them to push for a higher sale, which could conflict with the buyer's best interests. Similarly, Paul showing a property he previously listed could create an appearance of prejudice towards his own past interests. Lastly, negotiating for a family member, like a sister, can cloud judgment due to personal relationships. These situations do not have the same clear disclosures in place, making them more susceptible to conflicts of interest.

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