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.
Why This Is the Correct Answer
Why the Other Options Are Wrong
Deep Analysis of This Authorized Relationships Disclosures Question
Background Knowledge for Authorized Relationships Disclosures
Real World Application in Authorized Relationships Disclosures
Common Mistakes to Avoid on Authorized Relationships Disclosures Questions
Related Topics & Key Terms
Key Terms:
More Authorized Relationships Disclosures Questions
Consent to transition from single agent to transaction broker in Florida must be:
In Florida, the default brokerage relationship when no disclosure is made is:
A Florida licensee working with a customer in a no brokerage relationship:
Agent Rodriguez discovers that a property has had previous termite damage that was repaired. The seller instructs Rodriguez not to disclose this information to potential buyers. What should Rodriguez do?
Which brokerage relationship is presumed in Florida unless otherwise disclosed?
- → A Florida single agent must provide which disclosure?
- → Which duty is NOT owed by a Florida transaction broker?
- → A Florida single agent owes the principal all duties EXCEPT:
- → A Florida transaction broker owes limited confidentiality. This means:
- → Florida requires brokerage relationship disclosure be provided:
- → In Florida, a transaction broker:
- → In Florida, the disclosure of brokerage relationship must be made:
- → In Florida, dual agency is:
- → Agent Lisa is working with buyer clients to purchase a waterfront property. All of the following disclosure requirements apply in Florida EXCEPT:
- → According to Florida law, when must a real estate licensee provide brokerage relationship disclosure to a customer?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam
