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 only look at properties under $400,000. What should the agent do with this information?
Correct Answer
B) Keep the client's financial information confidential as instructed
Agents have a duty of confidentiality and must not disclose their client's financial information without explicit permission. The client's instruction to keep their full pre-approval amount private must be respected as part of the fiduciary relationship.
Why This Is the Correct Answer
Option B correctly identifies the agent's duty of confidentiality. Under Canadian real estate legislation, agents have fiduciary obligations to their clients, including keeping confidential information private unless explicitly authorized to disclose it. The client has specifically instructed the agent to only consider properties under $400,000, effectively directing that their full financial capacity remain confidential. This instruction must be respected as part of the agent's duty of obedience to lawful client directions and duty of confidentiality.
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Previous Question
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?
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An Alberta buyer's agent learns that their client plans to resell the property soon after buying it, and the client has not told the seller. The seller has not asked about the buyer's plans. What should the agent do?