Colorado broker Heather represents buyer Frank under a written buyer agency agreement. During the transaction, Frank tells Heather that he recently filed for bankruptcy and is concerned the seller will find out and reject his offer. Under Colorado agency law, how must Heather handle this information?
Correct Answer
C) Heather must keep the bankruptcy confidential as it is protected client information under buyer agency.
Under C.R.S. § 12-10-401 et seq., a buyer's agent owes fiduciary duties to the buyer, including the duty of confidentiality. Information about the buyer's financial condition, including a bankruptcy filing, is confidential client information that the buyer's agent must protect. The duty to disclose adverse material facts applies to facts about the property, not to confidential client information shared within the agency relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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