Legal Obligations of Fairness to the Customer
The real estate broker or agent is bound by a strict obligation of fairness and faithfulness to his customers, whose rights he is bound to promote and protect. Thus, any compensation agreement to the benefit of a broker or an agent which could place him in a conflict of interest with his customer must be disclosed to the customer in writing.
Moreover, a broker or agent who engages in a real estate transaction on his own behalf must inform the seller or the buyer of his status as a real estate broker or agent. If he fails to do so, the person to whom this information is due may get out of any offer or promise pertaining to the property, without penalty, as long as the contract (the notarized act of sale, for example) has not been signed by the parties.
If your broker or agent must receive compensation from a financial institution or a professional he has referred to you, he must inform you of this in writing.
If your broker or agent has a personal relationship with the other party, or if he is acting on his own behalf, he must also inform you of this in writing before the promise to purchase is signed.