Broker Natalie works for Meridian Realty in Indianapolis. She is representing buyer Calvin in his search for a home. Calvin tells Natalie that he is willing to pay up to $320,000 for the right property, though he plans to offer $295,000 initially. Natalie then shows Calvin a home listed by another broker at the same firm. Under Indiana law, if the managing broker has designated Natalie as Calvin's exclusive representative, what is her obligation regarding Calvin's maximum price?
Correct Answer
C) Natalie must keep Calvin's maximum price confidential as part of her fiduciary duty to him as his designated agent
Under IC 25-34.1-10, in a designated agency arrangement, Natalie has been assigned to exclusively represent Calvin. She owes him full fiduciary duties, including the duty of confidentiality. Calvin's maximum willingness to pay is a material fact that, if disclosed, could harm his negotiating position. Natalie must keep this information confidential from all other parties, including the listing broker at her own firm.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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