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?
Correct Answer
D) Decline to share the buyer's finances without written consent
The buyer's budget, pre-approval and search limit are the client's confidential information, and Code of Ethics s. 12 bars disclosing a client's confidential information to a third party without the client's written consent. Because the client has not authorized any disclosure, the agent should politely decline, which protects the client's negotiating position without saying anything untrue.
Why This Is the Correct Answer
This answer is correct because Code of Ethics s. 12 requires the client's written consent before a registrant discloses the client's confidential information to a third party. The client has not consented, so the agent declines to discuss the buyer's finances. Declining is honest, protects the client's negotiating position under Code s. 8, and avoids any misrepresentation under Code s. 5.
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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?
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A buyer's agent learns that their client has been pre-approved for a mortgage up to $500,000, but the client instructs them to make offers as if they were only approved for $400,000 to strengthen their negotiating position. What should the agent do?