PSI Virginia Real Estate Practice Exam

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Get ready for the PSI Virginia Real Estate Exam. Use multiple choice quizzes with hints and explanations to boost your confidence. Ace your exam!

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What is a potential conflict of interest in real estate transactions?

An agent's loyalty to their client
An agent's personal interests conflicting with those of their client
Completing transactions within the assigned timeframe
Sharing commission details with clients

The correct answer is: An agent's personal interests conflicting with those of their client

A potential conflict of interest in real estate transactions arises when an agent's personal interests intersect or interfere with the best interests of their client. This can occur when an agent is motivated by personal gain—such as financial incentives or relationships—that may not align with the goals or needs of their client. For example, if an agent stands to benefit more by pushing a particular property that suits their interests rather than the interests of the client, this creates a situation where loyalty and fiduciary duty are compromised. The other options do not represent a conflict of interest. Loyalty to a client is actually a fundamental aspect of an agent’s responsibilities. Completing transactions within a specified timeframe demonstrates professionalism and efficiency, and sharing commission details with clients is generally considered a transparent and ethical practice rather than a conflict. Thus, recognizing and addressing potential conflicts of interest is vital for maintaining trust and integrity in real estate transactions.