Agent Nora in Idaho has been working with buyer couple James and Linda for six weeks under a written buyer representation agreement. James tells Nora privately that Linda does not know they can actually afford up to $600,000 — they want to keep their offers at $540,000 to save money. Nora's brokerage later takes a listing on a property James and Linda want to buy, creating a limited dual agency situation. Both parties sign the required written consent. What is Nora's obligation regarding James's confidential budget information in the limited dual agency context?
Correct Answer
C) Nora must maintain confidentiality of James and Linda's true budget and may not use it to benefit the seller
Even in a limited dual agency relationship, a licensee retains the obligation to protect confidential information obtained from a client before the dual agency was established. Under Idaho law and general agency principles, James and Linda's true budget ceiling is confidential information that Nora may not disclose to or use to benefit the seller. The written consent to limited dual agency does not eliminate the duty to protect previously obtained confidential client information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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