A BC licensee realizes that acting for both a buyer client and a seller client in the same trade would be dual agency. With both clients' written agreement in the approved form, the licensee continues for the seller only. The licensee earlier learned that the buyer has a past bankruptcy. What must the licensee do?
Correct Answer
C) Keep the buyer's information confidential from the seller
Rules s. 65 lets a licensee facing dual agency represent only one client, with a written agreement from all clients. That agreement must state that the licensee may have confidential information about the client whose representation is ending and is prohibited from disclosing it. The buyer's bankruptcy must stay confidential.
Why This Is the Correct Answer
The s. 65 agreement records that the licensee is prohibited from disclosing the former client's confidential information, so the bankruptcy cannot be shared with the seller.
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In British Columbia, a buyer's licensee discovers that their client's offer was accepted, but the seller's licensee failed to disclose a material latent defect that both the seller and the seller's licensee knew about. What is the most appropriate immediate action?
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