A listing agent, without the seller's consent, tells the buyer during negotiations that the seller will accept $50,000 below the listed price. Which fiduciary duty has the agent breached?
Correct Answer
D) The duty of loyalty and confidentiality
California Civil Code §2079.21 prohibits a listing agent from disclosing to a buyer the seller's willingness to accept less than the listing price, or any other confidential information, without the seller's express written consent. This obligation flows directly from the fiduciary duty of loyalty and confidentiality, which requires the agent to protect the principal's negotiating position and interests above all others. Revealing the seller's bottom-line price without authorization is a textbook breach of this duty.
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Under California Civil Code §2079.13, which party does the 'selling agent' represent in a residential real estate transaction?
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Under California Civil Code §2079.16, a seller's agent owes certain duties to the buyer, even though the agent does not represent the buyer. All of the following are duties owed by a seller's agent to the buyer EXCEPT: