Connecticut salesperson Alex is working as a buyer's agent for client Nina. During a showing, Nina confides to Alex that she is willing to pay up to $525,000 for the property even though she plans to offer $490,000. The listing agent later asks Alex what the highest price his buyer would pay. What is Alex's obligation under Connecticut agency law?
Correct Answer
D) Alex must keep Nina's maximum price confidential as it is privileged information belonging to his client
As Nina's buyer's agent, Alex owes her full fiduciary duties, including confidentiality. Nina's maximum willingness to pay is confidential information that she shared in the context of the agency relationship. Alex is obligated under Connecticut agency law to protect this information and must not disclose it to the listing agent or the seller, as doing so would directly harm Nina's negotiating position and breach his duty of loyalty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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