An Alberta real estate associate working as a buyer's agent learns confidential information about the seller's motivation to sell quickly. What should the associate do?

Q: What is the correct answer to: An Alberta real estate associate working as a buyer's agent learns confidential information about the seller's motivation to sell quickly. What should the associate do?

The correct answer is Share the information with their client (the buyer) as part of their fiduciary duty of disclosure, provided it was not obtained through a confidential relationship. A buyer's agent owes fiduciary duties including full disclosure of material information to their client. If the seller's motivation was learned through legitimate means (public statements, observable circumstances, non-confidential conversations), the associate must share it with the buyer. However, information obtained through a prior confidential relationship with the seller must remain protected.

Q: What background knowledge is needed for this Agency & Professional Ethics question?

Alberta agency law creates a hierarchy of duties. A buyer's agent must disclose material information to their client, but must also respect confidentiality from prior relationships. The key distinction is how the information was obtained: legitimately acquired information must be shared; confidentially obtained information must be protected.

Q: What is a good way to remember the answer to this Agency & Professional Ethics question?

Ask: 'How did I learn this?' If from a confidential relationship, keep it secret. If from legitimate sources, share it with your client. Source determines duty. On the exam, when facing disclosure dilemmas, first identify the source of the information. Legitimate source = share with client. Confidential source = protect it.

Q: What exam tip applies to this Agency & Professional Ethics question?

Pay close attention to qualifiers like 'provided it was not obtained through a confidential relationship.' These conditions are often what make an answer correct.

Q: How does this Agency & Professional Ethics concept apply in real world practice?

While visiting an open house, a buyer's agent overhears the seller telling a neighbor they need to sell quickly due to a job relocation. Since this was learned in a public setting and not through a confidential relationship, the agent should inform their buyer client, who may use this to negotiate a better price.

Question

Agency & Professional EthicsABMEDIUM

An Alberta real estate associate working as a buyer's agent learns confidential information about the seller's motivation to sell quickly. What should the associate do?

Answer Options

A

Keep the information confidential and not share it with anyone

B

Share the information with their client (the buyer) as part of their fiduciary duty of disclosure, provided it was not obtained through a confidential relationship

C

Post the information online to help all potential buyers

D

Share the information only with their broker