Broker Diana lists a property and receives two offers simultaneously. The seller instructs Diana to tell both buyers that there are competing offers and to submit their 'highest and best' offers. Diana discloses the existence of competing offers as instructed but, without the seller's knowledge, also tells Buyer A the exact price offered by Buyer B, hoping Buyer A will increase their offer and close the deal quickly. Under Indiana law, which of the following most accurately describes Diana's conduct?
Correct Answer
D) Diana violated her fiduciary duty to the seller by disclosing confidential offer information without the seller's authorization
Under IC 25-34.1 and Indiana agency law, Diana owes fiduciary duties to her seller client, including the duty of confidentiality and loyalty. The seller authorized disclosure of the existence of competing offers — not the specific price terms of any offer. By disclosing Buyer B's exact offer price to Buyer A without the seller's knowledge or consent, Diana breached her fiduciary duty of confidentiality to the seller. This unauthorized disclosure could also expose Diana to IREC disciplinary action and civil liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
- → Which Wyoming rule applies when an out-of-state salesperson applies for Wyoming licensure?
- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
- → Which Wyoming rule applies when a licensee does not timely submit the complete renewal application, proof of CE, and renewal fees?
- → Which Wyoming rule applies when the Commission acts on license issuance and discipline?
- → In Wyoming real estate practice, a written sworn complaint or Commission motion starts a disciplinary matter. What should the licensee remember?
- → A Wyoming licensee is reviewing a first-time salesperson applicant asks which prelicense courses are required. What is the best answer?
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