ManagingAgent/RealEstateAgent ConflictOfInterest

The managing agent of our TX HOA is a state real estate agent. Does this duel role constitute a conflict of interest? Thanks, PC

As a broker who manages HOAs and Condos, I love the added source of business that comes from selling, renting and managing rental property within an association. The problems and potential conflict arises when, as a member of the association management team, I become aware of information which may be of a nature as to require disclosure to a buyer. For example, I may learn of a financial condition which could lead to a special assessment. If I was "just a broker" whithout such knowledge, I would have no obligation to learn about this, thus I have no obligation to disclose. But, the fact that I know, even though a formal decision has yet to be made or announced, may cause me to have the obligation to disclose.

We do continue to provide both services, but we are looking at the potential conflict and considering our options. One option is to have different divisions handle the two aspects. While Maryland requires no license to manage associations, it does have a unique agency law for brokers. Dual Agency, whereby a single firm may represent both buyer and seller, can only be accomplished if the Broker is neither the buyer's agent nor the seller's agent. Two associates within the firm may enter into agency relationships with buyers and sellers, but the broker must remain between them as the only authorized dual agent permitted in the company. We think this may address the conflicts concerning association managers and brokerage agents.