Colorado broker associate Wendy is representing buyer-client Robert. Robert asks Wendy to find out whether the seller would accept $310,000 instead of the listed price of $335,000 before submitting a formal offer. Wendy calls the listing broker and informally discusses the seller's price flexibility, learning that the seller will likely accept $320,000. Wendy then tells Robert this information. Which fiduciary duty did Wendy fulfill by sharing this information with Robert?
Correct Answer
D) Duty of disclosure
The duty of disclosure requires a Colorado broker to promptly share all information with the client that is material to the client's decision-making. The seller's likely acceptance price of $320,000 is highly material to Robert's decision about what offer to make and at what price. By sharing this information with Robert, Wendy fulfilled her duty of disclosure to her buyer-client. This is a core component of the fiduciary relationship — ensuring the client has all available material information to make informed decisions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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