Agent Martinez is a buyer's agent in Iowa representing the Garcia family. During a showing, the seller's agent mentions that the seller is going through a divorce and must sell quickly. Agent Martinez knows the Garcias could offer significantly below list price and still get the property. What is Agent Martinez's duty regarding this information under Iowa agency law?
Correct Answer
C) Martinez must use this information to advise the Garcias on their negotiating strategy, as it serves their interests as the client
As the Garcias' buyer's agent, Agent Martinez owes fiduciary duties exclusively to the Garcia family, including the duty of loyalty and the duty to promote their best interests. Information learned about the seller's motivation and urgency to sell is material to the Garcias' negotiating position. Martinez is not only permitted but obligated to use this information to advise the Garcias on their offer strategy. Iowa Code Chapter 543B establishes that a buyer's agent must act in the buyer's best interest throughout the transaction.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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