Broker James represents both the seller, Mr. Hoffman, and the buyer, Ms. Patel, in a Denver home sale after both parties signed written consent forms. During negotiations, Ms. Patel asks James to reveal the lowest price Mr. Hoffman would accept. Under Colorado's dual agency rules, what must James do?
Correct Answer
B) Refuse to disclose Mr. Hoffman's confidential information to Ms. Patel
Even in a dual agency relationship, a broker owes each party the duty of confidentiality. A dual agent may not disclose one client's confidential information — such as the seller's minimum acceptable price — to the other party. This is a core limitation of dual agency under Colorado law (C.R.S. § 12-10-401 et seq.) and is one of the primary reasons informed consent is required before entering the relationship.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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.
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