Ace the California Real Estate Exam 2026 – Unlock Your Dream Career Today!

When Broker A shows a property to a family member who is interested in purchasing it, the potential issue that can arise is undisclosed dual agency. This is when the broker is representing both the buyer and the seller in the transaction, which can create a conflict of interest and raise ethical concerns. A and B do not address the potential issue of the broker's obligation to disclose their relationship with the buyer to the seller. D is incorrect because even if the property sells, the issue of undisclosed dual agency can still exist.