Agent Patel in Kentucky represents buyer Rodriguez. During negotiations on a home listed at $280,000, Rodriguez tells Agent Patel that he would be willing to pay up to $295,000 if necessary to get the house. The seller's agent asks Agent Patel how high Rodriguez will go. What must Agent Patel do under Kentucky agency law?
Correct Answer
D) Refuse to disclose Rodriguez's maximum price because it is confidential client information
Under Kentucky agency law (KRS Chapter 324 and 201 KAR 11:121), confidentiality is a core fiduciary duty owed by a buyer's agent to the buyer. Rodriguez's maximum willingness to pay is highly sensitive negotiating information that Agent Patel must protect. Disclosing this information to the seller's agent would directly harm Rodriguez's negotiating position and would constitute a breach of the fiduciary duty of confidentiality.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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