In Connecticut, Agent Lisa represents buyer Kevin in his search for a home. During a showing of a property listed by a different brokerage, Kevin tells Lisa that he is willing to pay up to $480,000 even though he plans to offer $440,000. Later, Kevin decides to make an offer on a property listed by Lisa's own brokerage. Lisa discloses the dual agency situation in writing and both Kevin and the seller sign the consent form. May Lisa now share Kevin's $480,000 ceiling with the seller?
Correct Answer
D) No, because Kevin's maximum price is confidential information that must be protected even in a dual agency
Written consent to dual agency does not eliminate the licensee's duty to protect each party's confidential information. Kevin disclosed his $480,000 ceiling to Lisa in confidence during her role as his exclusive buyer's agent. Even after the dual agency consent is executed, Lisa is prohibited from disclosing that confidential information to the seller. Dual agency limits the agent's advocacy but preserves the duty of confidentiality for information shared before and during the dual agency arrangement.
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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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