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?
Correct Answer
A) Keep the plan confidential unless the client authorizes disclosure
Rule 44(1) of the RECA Rules forbids a licensee from disclosing information about a client, property or transaction unless the client authorizes it or the law requires it, and a buyer's agent owes the buyer a fiduciary duty of confidentiality (Rule 58(e)). A buyer's plan to resell is the buyer's own business and is not a defect in the property that must be disclosed, so the agent keeps it confidential.
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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 only look at properties under $400,000. What should the agent do with this information?
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