Salesperson Jade represents buyer Taro in purchasing a Waikiki condominium. During negotiations, Taro confides to Jade that he is willing to pay up to $950,000 for the unit but wants to start with an offer of $880,000. The seller's agent, Broker Sam, later asks Jade what Taro's maximum budget is. What should Jade do?
Correct Answer
A) Decline to reveal Taro's maximum price because it is confidential client information Jade must protect
Under HRS Chapter 467 and HAR Title 16, Chapter 99, Jade owes Taro a fiduciary duty of confidentiality. Taro's maximum willingness to pay is among the most sensitive confidential information a buyer can share with their agent. Revealing it to the seller's agent would directly harm Taro's negotiating position and constitute a serious breach of Jade's fiduciary duty. Jade must decline to share this information without Taro's consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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