A buyer's agent learns that their client has been pre-approved for $500,000 but the client tells the seller's agent they can only afford $400,000. What should the buyer's agent do?
Correct Answer
A) Remain silent, as this is confidential client information
The pre-approval amount is the client's confidential information, and Code of Ethics s. 12 bars disclosing it to a third party without the client's written consent. Staying silent is not dishonest: the agent says nothing untrue. The agent must still not repeat or endorse the client's statement (ss. 1 and 5), and may advise the client privately about how they negotiate.
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A buyer's agent learns that their client has been pre-approved for $500,000 but tells the agent their maximum budget is $400,000. What should the agent do with this information?
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A buyer's agent learns that their client has been pre-approved for $500,000 but has told the agent to look only at properties under $400,000. The client has not authorized the agent to share any financial information. The seller's agent asks about the buyer's maximum budget. How should the buyer's agent respond?