Agent Rosa represents a seller in a residential transaction in Arkansas. As the seller's agent, Rosa owes specific duties to her client. Which of the following is NOT a disclosure obligation Rosa owes to the seller under Arkansas agency law?
Correct Answer
C) Disclosing the buyer's highest price the buyer is willing to pay, if Rosa learned it confidentially
While a seller's agent owes fiduciary duties—including the duty of disclosure—to the seller, those duties do not include disclosing confidential information obtained from the buyer. If Rosa learned the buyer's maximum willingness to pay through a confidential communication, she is NOT permitted to disclose this to the seller. Doing so would breach the confidentiality owed to the buyer as a third party and could constitute an ethical violation. Arkansas agency law does not require—and in fact prohibits—sharing a buyer's confidential negotiating information with the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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