Agent Kim is representing both buyer and seller in a dual agency situation. The seller confidentially tells Kim they would accept $10,000 less than the listing price. The buyer asks Kim what the seller might accept. How should Kim respond?
Correct Answer
A) Suggest the buyer make an offer and see how the seller responds
Correct: A - Suggest the buyer make an offer and see how the seller responds. Dual agents must maintain confidentiality and cannot disclose either party's confidential information, so suggesting the buyer make an offer is appropriate. Why not B: This option is incorrect because "Tell the buyer the seller is firm on the listing price" does not match the rule tested by the question. The correct answer is "Suggest the buyer make an offer and see how the seller responds". Dual agents must maintain confidentiality and cannot disclose either party's confidential information, so suggesting the buyer make an offer is appropriate. Why not C: This option is incorrect because "Advise the buyer to offer exactly $10,000 less than asking price" does not match the rule tested by the question. The correct answer is "Suggest the buyer make an offer and see how the seller responds". Dual agents must maintain confidentiality and cannot disclose either party's confidential information, so suggesting the buyer make an offer is appropriate. Why not D: This option is incorrect because "Tell the buyer the seller would accept $10,000 less" does not match the rule tested by the question. The correct answer is "Suggest the buyer make an offer and see how the seller responds". Dual agents must maintain confidentiality and cannot disclose either party's confidential information, so suggesting the buyer make an offer is appropriate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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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