Connecticut salesperson Greg represents buyer Lisa under a signed buyer representation agreement. During the transaction, Lisa instructs Greg to tell the seller that she is not interested in the property unless the seller reduces the price by $30,000, which is a negotiating tactic—Lisa is actually willing to pay the full asking price. The seller's agent asks Greg directly whether Lisa would pay full price. How must Greg respond under Connecticut agency law?
Correct Answer
B) Greg must follow Lisa's instructions and convey her stated position without volunteering that it is a negotiating tactic
Under Connecticut agency law, a buyer's agent owes the fiduciary duty of obedience to the client's lawful instructions. Conveying a negotiating position—even one that does not reflect the buyer's true maximum willingness to pay—is a standard and lawful negotiating tactic, not an illegal misrepresentation. Greg is not required to volunteer Lisa's true maximum price; his duty is to advocate for Lisa's interests and follow her lawful instructions. The duty of honesty applies to material facts about the property and transaction, not to negotiating positions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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