An agent receives confidential information that the local council is planning to rezone the area, which would significantly increase property values. The vendor is unaware of this. What should the agent do?
Correct Answer
D) Inform the vendor immediately, since it could affect their decision to sell
The agent's fiduciary duty requires them to share information that could materially affect the principal's interests, even if obtained from other sources. Withholding information that could significantly impact the vendor's decision-making would breach their duty to act in the principal's best interests.
Why This Is the Correct Answer
Information that could significantly change the property's value is material to the vendor's decision. The agent's fiduciary duty is to pass it on promptly so the vendor can decide how to proceed.
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