Agent Rachel in Connecticut is a dual agent representing both buyer Greg and seller Helen with written consent from both parties. Greg tells Rachel that he has been approved for a mortgage up to $600,000 but wants to keep that fact private. Helen then asks Rachel whether Greg is financially qualified to complete the purchase. What should Rachel tell Helen?
Correct Answer
A) Rachel should tell Helen that Greg is a qualified buyer without disclosing the specific approval amount
A dual agent may confirm that a buyer is financially qualified to complete the transaction without disclosing the specific, confidential details of the buyer's financial capacity. The specific mortgage approval ceiling of $600,000 is confidential information that Greg shared in confidence and that Rachel must protect. However, Rachel can and should confirm general buyer qualification to facilitate the transaction, as this serves both parties' interests without breaching confidentiality.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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