Sales associate Rodriguez is working with both the buyer and seller in the same transaction under no brokerage relationship with both parties. The buyer confides that they are willing to pay $10,000 more than their current offer. What should Rodriguez do with this information?
Correct Answer
D) Not use the information to the disadvantage of either party
Correct: Under no brokerage relationship, the licensee cannot use confidential information to the disadvantage of either party but has no duty to maintain confidentiality. Why not A: There is no confidentiality duty in no brokerage relationship. Why not B: The licensee should not actively disclose but cannot be held to confidentiality. Why not C: Suggesting offer changes would exceed ministerial acts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Environmental hazards disclosure involves informing buyers about environmental contamination or hazards affecting or potentially affecting a property, including underground storage tanks, contaminated soil, hazardous waste, and proximity to Superfund sites.
Flood zone disclosure requires informing buyers whether a property is located in a designated flood zone as mapped by FEMA. Properties in high-risk flood zones may require mandatory flood insurance.
HOA disclosure requires informing buyers about the existence, rules, fees, financial health, and restrictions of a homeowners association governing the property. This information helps buyers understand their obligations before purchase.
More Authorized Relationships Disclosures Questions
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