What should a licensee do upon discovering a potential conflict of interest?

When a licensee discovers a potential conflict of interest, it is imperative to disclose it to all parties involved. Transparency is a fundamental principle in real estate practice, as it helps maintain ethical standards and builds trust among clients. By making all parties aware of the conflict, the licensee ensures that everyone is informed and can make decisions with full knowledge of the circumstances.

Disclosing conflicts of interest helps to protect the licensee legally and ethically, as it minimizes the risk of accusations of misconduct or failure to act in the best interest of clients. Additionally, this practice aligns with the regulations set forth by the Indiana Real Estate Commission, which emphasizes the importance of honesty and integrity in real estate transactions. It's also a good opportunity for negotiation, as parties may agree on how to handle the conflict in a mutually beneficial way.

The other choices do not adhere to the ethical obligations required in the field. Ignoring a potential conflict or keeping it to oneself does not serve the interests of the clients and could lead to serious repercussions for the licensee. Consulting a real estate attorney might be beneficial in some scenarios, but the fundamental immediate action is to disclose the conflict to maintain transparency and uphold professional standards.