What is a key requirement for a lawyer acting in a dual capacity for both a buyer and a lender?

A key requirement for a lawyer acting in a dual capacity for both a buyer and a lender is to fully disclose potential conflicts to both parties. This is essential because when a lawyer represents two parties with potentially differing interests, such as a buyer and a lender, there is the possibility of conflicts of interest arising. For the lawyer to maintain ethical standards and uphold their duty to both clients, they must transparently communicate any potential issues that could impact their ability to represent each party fairly.

Disclosing conflicts allows both the buyer and the lender to make informed decisions about whether they wish to continue with the lawyer's representation. This serves to protect the interests of all parties involved and ensures that the legal process is conducted in a fair and ethical manner.

Other choices like maintaining an exclusive relationship with the buyer, obtaining separate agreements from both parties, or negotiating terms directly between the two parties do not adequately address the ethical obligation to inform clients about potential conflicts, which is crucial for maintaining trust and integrity in the legal profession.