Broker Smith represents both the buyer and seller in a residential transaction. The seller confides that they must sell quickly due to financial hardship and would accept $20,000 less than the listing price. What should Broker Smith do?
Correct Answer
A) Keep this information confidential as it's material to the seller's negotiating position
Correct: In dual agency, confidential information that could harm a client's negotiating position must be kept confidential. Why not A: Sharing would breach fiduciary duty to the seller. Why not C: This exceeds the dual agent's role in negotiations. Why not D: Withdrawal isn't required if proper dual agency procedures are followed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
More Az Agency Disclosures Questions
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