If a buyer is a client of a broker and wishes to purchase a listed property, what must happen?

When a buyer is a client of a broker and wishes to purchase a property that is listed by that same broker, it creates a situation of dual representation. Dual representation occurs when a broker represents both the buyer and the seller in the same transaction. For this type of arrangement to be legally and ethically compliant, the seller must be informed of the situation and provide explicit consent to the broker representing both parties.

This consent is crucial because it ensures that all parties involved are aware of the broker's role and potential conflicts of interest. It protects the rights and interests of both the buyer and the seller, allowing the broker to serve as an intermediary while maintaining transparency.

In contrast, the other options present misunderstandings of the dual representation process. Waiving disclosures is not a standard requirement and may not protect all parties involved. Refusing to represent either party would create complications in the transaction, as the broker's role is to facilitate the sale. Lastly, failing to inform only the seller neglects the necessary communication required between all parties in a dual representation scenario.