Connecticut broker Linda is acting as a disclosed dual agent for both the seller, Frank, and the buyer, Carol, in the same transaction with both parties' written consent. During negotiations, Carol privately tells Linda that she can afford up to $650,000 even though her initial offer is $610,000. Under Connecticut dual agency rules, what is Linda's obligation regarding this information?
Correct Answer
C) Linda must keep Carol's maximum budget confidential from Frank, as the duty of confidentiality survives in dual agency
Under Connecticut dual agency law, even when a broker is a disclosed dual agent with written consent from both parties, the duty of confidentiality survives. The dual agent must not disclose either party's confidential negotiating information — including the buyer's maximum budget or the seller's minimum acceptable price — to the other party. This is one of the key limitations on dual agency: the agent cannot fully advocate for either party and must protect each party's confidential information from the other.
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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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