An agent learns that their buyer client is pre-approved for $500,000 but is only looking at homes under $400,000. The client has not authorized sharing any financial details. The seller's agent asks about the buyer's maximum budget. How should the agent respond?
Correct Answer
D) Decline to reveal the buyer's finances without written consent
A buyer's pre-approval, budget and qualification are the client's confidential information. Code of Ethics s. 12 bars disclosing a client's confidential information to a third party without the client's written consent, and the client has not given it. The agent should decline to discuss the buyer's finances, which is honest and protects the client's negotiating position.
Why This Is the Correct Answer
This answer is correct because Code of Ethics s. 12 requires the client's written consent before the agent discloses the client's confidential information, and no consent exists. Declining to discuss the buyer's finances is truthful, keeps the buyer's negotiating position intact, and fulfils the duty to protect the client's best interests.
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An agent learns that a major development project will be announced near their client's property, likely increasing its value significantly. The client wants to list immediately at current market value. What is the agent's ethical obligation?
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