An Alberta brokerage is using a designated agency model. During a transaction, the designated buyer's associate inadvertently shares their client's maximum price with the designated seller's associate within the same brokerage. What is the consequence?
Correct Answer
B) This breaches the associate's fiduciary duty of confidentiality and could lead to RECA discipline
In a designated agency arrangement, each designated associate owes fiduciary duties exclusively to their client, including confidentiality. Sharing a client's maximum purchase price with the opposing party's associate — even within the same brokerage — is a serious breach of the duty of confidentiality. This could result in RECA disciplinary proceedings and potential liability.
Why This Is the Correct Answer
In designated agency, each associate owes full fiduciary duties exclusively to their client, including strict confidentiality. Sharing the buyer's maximum price with the seller's designated associate — even within the same brokerage — is a serious breach of the duty of confidentiality. This could result in RECA disciplinary proceedings, potential civil liability, and damage to the client's negotiating position.
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