Buyer's agent John learns that his client Amy has been pre-approved for a $400,000 loan but tells sellers she's only approved for $350,000 to strengthen her negotiating position. The listing agent asks John about Amy's financing. How should John respond?
Correct Answer
C) Refuse to discuss Amy's financing details
Correct: John should refuse to discuss Amy's financing details. Client financial information is confidential, and the agent must maintain this confidentiality while not making false statements. Why not A: This would violate client confidentiality and potentially harm Amy's negotiating strategy. Why not B: Making false statements about financing could constitute fraud and violate professional ethics. Why not D: While directing questions to the client might seem appropriate, the agent should clearly state they cannot discuss confidential client information rather than deflecting.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
More Az Agency Disclosures Questions
While reviewing a transaction in Mohave County, a designated broker claims there is no need to supervise listing agents' disclosure or advertising practices because each salesperson is independent. Which statement is most accurate under current Arizona rules?
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In a licensing seminar in Mesa, a buyer-broker agreement expires before the buyer writes an offer and the parties do not extend it. Which statement should the broker communicate?
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- → In a licensing seminar in Tucson, mia signed a buyer-broker agreement and asks whether the broker may still favor the listing broker's interests when advising on offer price. What is the most accurate response?
- → During an Arizona file audit in Pima County, julian signed a buyer-broker agreement and asks whether the broker may still favor the listing broker's interests when advising on offer price. Which statement should the broker communicate?
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