A California buyer's agent is told by the listing agent that a competing offer exists on the property, but the amount is not disclosed. The buyer asks their agent to estimate the competing offer amount so they can decide how much to bid. What is the buyer's agent's correct course of action?
Correct Answer
D) Inform the buyer that the competing offer amount is unknown and confidential, and help the buyer develop a strategy based on verified market data
Under California Civil Code §2079.16 and the fiduciary duties owed to a buyer, the agent must act with honesty and cannot speculate about or misrepresent information they do not possess. The competing offer's terms are confidential to the seller and listing agent. The buyer's agent fulfills their duty by truthfully disclosing the limits of their knowledge and redirecting the buyer toward a data-driven bidding strategy using verifiable market information.
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