Disclose Your Ownership Interest

Q: I know it’s a best practice to provide at least three names of vendors that clients might use in their real estate transaction, like attorneys and title insurance, home inspection and moving companies. I take it a step further and provide all my buyer and seller clients with a comprehensive list of many vendors.

My vendor list includes several cleaning companies, one of which I own. I tell clients they are not obligated to use any of the vendors. Do I have to disclose that I own one of the companies on the list?

A: Providing a comprehensive list of vendors is a great service to clients. I also have a several-page vendor list and let clients decide whom they’d like to use. However, Article 6 of the Code of Ethics states that if you or your company might receive a financial benefit from making a recommendation to a client for a product or service, you must disclose it to the client. Even if you don’t consider it a recommendation because you’re letting the client choose, it could be construed as a recommendation since you provided the list. It’s best to err on the side of caution and make that disclosure...