Colorado broker associate Carlos represented buyer-client Sofia in the purchase of a home that closed six months ago. Sofia now calls Carlos and asks him to reveal the seller's personal financial situation, which Sofia had not asked about during the transaction but Carlos had learned during negotiations. How should Carlos handle this request?
Correct Answer
A) Carlos must refuse to disclose the information because the duty of confidentiality survives the termination of the agency relationship
Under Colorado law, the duty of confidentiality does not end when the transaction closes or when the agency relationship terminates. A Colorado broker must continue to protect confidential information learned during the course of the agency relationship, even after the relationship ends. The seller's personal financial situation, learned during negotiations, is exactly the type of confidential information that must be protected indefinitely. Carlos must refuse to disclose this information to Sofia — or to anyone else — regardless of the fact that the transaction has closed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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