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Authorized Relationships DisclosuresTransaction_brokerMEDIUM

Sarah is working as a transaction broker for both the buyer and seller in a residential transaction. During the negotiation process, the seller confidentially tells Sarah that they would accept $10,000 less than the listed price due to financial hardship. What should Sarah do with this information?

Correct Answer

D) Keep the information confidential and not disclose it to the buyer

Correct: D - Keep the information confidential and not disclose it to the buyer. Transaction brokers must maintain confidentiality of information given by either party unless disclosure is required by law or authorized by the client. Why not A: This option is incorrect because "Suggest the seller reduce the listing price immediately" does not match the rule tested by the question. The correct answer is "Keep the information confidential and not disclose it to the buyer". Transaction brokers must maintain confidentiality of information given by either party unless disclosure is required by law or authorized by the client. Why not B: This option is incorrect because "Share the information with the buyer to help facilitate the transaction" does not match the rule tested by the question. The correct answer is "Keep the information confidential and not disclose it to the buyer". Transaction brokers must maintain confidentiality of information given by either party unless disclosure is required by law or authorized by the client. Why not C: This option is incorrect because "Withdraw from representing both parties due to conflicting interests" does not match the rule tested by the question. The correct answer is "Keep the information confidential and not disclose it to the buyer". Transaction brokers must maintain confidentiality of information given by either party unless disclosure is required by law or authorized by the client.

Answer Options
A
Suggest the seller reduce the listing price immediately
B
Share the information with the buyer to help facilitate the transaction
C
Withdraw from representing both parties due to conflicting interests
D
Keep the information confidential and not disclose it to the buyer

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Related Topics & Key Terms

Key Terms:

transaction_brokerconfidentialitydual_representationdisclosure_duties
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