When listing a home, the seller is concerned that buyers may object to the asbestos flooring. Their agent, Agent X, has a family member who is a home inspector. Does Agent X have a problem? Agent X is:

While exercising due diligence is important in real estate transactions, Agent X's choice to employ a family member as a home inspector does not reflect due diligence. True due diligence would involve selecting an independent, qualified inspector to ensure an impartial evaluation of the home’s condition, especially concerning concerns like asbestos.

Agent X may not necessarily be failing to verify credentials, as the family member could have appropriate qualifications. However, the primary issue is the conflict of interest that arises from their personal relationship, which overshadows credential verification and compromises the inspection's integrity.

Although Agent X may believe they are protecting the seller’s interests, using a family member as an inspector could ultimately harm the seller. If buyers question the validity of the inspection due to perceived bias, it could lead to objections or even lawsuits, undermining the seller's position in the transaction.