Sandra is an Indiana Broker who represents the seller. During negotiations, the buyer asks Sandra whether the seller would accept $270,000 instead of the listed price of $285,000. Sandra knows the seller has told her confidentially that he would accept as low as $265,000. What must Sandra do under Indiana agency law?
Correct Answer
C) Maintain confidentiality about the seller's minimum price and not disclose it to the buyer
Under Indiana agency law (IC 25-34.1-10), a Broker representing the seller owes fiduciary duties to the seller, including the duty of confidentiality. The seller's willingness to accept a price below the listing price is confidential information that the seller has specifically shared with the broker. Sandra must not disclose this information to the buyer, as doing so would breach her fiduciary duty of confidentiality and loyalty to her seller client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
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