Which of the following is considered a conflict of interest?

In real estate, a conflict of interest arises when a party's personal interests interfere with their professional responsibilities or obligations. The situation described in the chosen answer demonstrates this principle effectively. When a licensee only shows properties that have a cooperating fee split that is preferable to them, their personal financial interest can compromise their ability to serve the buyer's best interests. A real estate agent has a fiduciary duty to act in the best interests of the client, which includes providing a full range of options that meet the buyer’s criteria, rather than limiting choices based on what would financially benefit the agent more.

In contrast, the other scenarios illustrate transparency and disclosures that do not inherently create a conflict of interest. Disclosing relationships, such as being related to the buyer's family members or the seller, allows all parties to be aware of potential biases but does not prevent the agent from fulfilling their role effectively. These disclosures help ensure that everyone involved in the transaction can make informed decisions without the agent's undisclosed relationships influencing the outcome negatively.