In a dual agency situation, what is the agent's primary obligation?
Correct Answer
A) To maintain both parties' confidentiality while facilitating the transaction
In dual agency, the agent must maintain strict confidentiality for both parties and facilitate the transaction fairly without advocating for either side. The agent cannot provide the full fiduciary duties to either party but must treat both with fairness and honesty.
Why This Is the Correct Answer
Option A correctly identifies the dual agent's primary obligation under Canadian real estate law. In dual agency, the agent must maintain strict confidentiality for both parties while facilitating the transaction neutrally. This is mandated by provincial regulations including TRESA in Ontario and similar legislation in other provinces. The agent cannot breach confidentiality or favor either party, but must ensure the transaction proceeds fairly and transparently while protecting sensitive information from both sides.
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In Alberta, a real estate professional fails to disclose a potential conflict of interest involving a family member's competing offer. This violation could result in: