Single agent Lisa represents buyer Carlos in purchasing a condominium in Orlando. During negotiations, the seller's agent mentions to Lisa that the seller is facing foreclosure and needs to close within 30 days. The seller's agent asks Lisa not to share this information with Carlos. How should Lisa handle this situation?
Correct Answer
D) Share the information with Carlos since it could affect his negotiating position
Correct: D - Share the information with Carlos since it could affect his negotiating position. As Carlos's single agent, Lisa has a fiduciary duty to share all information that could materially affect her principal's interests, including information about the seller's motivation that could impact negotiations. Why not A: This option is incorrect because "Suggest that Carlos make a lower offer without revealing the specific reason" does not match the rule tested by the question. The correct answer is "Share the information with Carlos since it could affect his negotiating position". As Carlos's single agent, Lisa has a fiduciary duty to share all information that could materially affect her principal's interests, including information about the seller's motivation that could impact negotiations. Why not B: This option is incorrect because "Only share the information if Carlos directly asks about the seller's motivation" does not match the rule tested by the question. The correct answer is "Share the information with Carlos since it could affect his negotiating position". As Carlos's single agent, Lisa has a fiduciary duty to share all information that could materially affect her principal's interests, including information about the seller's motivation that could impact negotiations. Why not C: This option is incorrect because "Keep the information confidential as requested by the seller's agent" does not match the rule tested by the question. The correct answer is "Share the information with Carlos since it could affect his negotiating position". As Carlos's single agent, Lisa has a fiduciary duty to share all information that could materially affect her principal's interests, including information about the seller's motivation that could impact negotiations.
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All of the following are required fiduciary duties that a Florida single agent owes to their principal EXCEPT:
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Broker Mike has been working as a single agent for seller Janet for 60 days. A potential buyer approaches Mike directly and asks him to also represent them in purchasing Janet's property. Mike wants to help both parties. What is the correct procedure for Mike to follow under Florida law?