A Colorado buyer and seller both consent in writing to dual agency with Broker Natalie. After the consent forms are signed, the buyer asks Natalie to recommend a specific offer price based on what she knows about the seller's situation. What should Natalie do?
Correct Answer
B) Recommend an offer price based on comparable market data without revealing the seller's confidential information
As a dual agent under Colorado law (C.R.S. § 12-10-401 et seq.), Natalie may assist the buyer with market-based information such as comparable sales data to help determine an offer price. However, she must not use or disclose the seller's confidential information — such as the seller's financial situation or minimum acceptable price — in making that recommendation. Providing objective market data is permissible; leveraging the seller's private information is not.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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.
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