A Kentucky licensee named Beth represents buyer Derek. The seller is represented by a different brokerage. During negotiations, Derek tells Beth that he is willing to pay up to $285,000 but wants to start with an offer of $265,000. The seller's agent later contacts Beth directly and asks whether Derek has any flexibility above $265,000. What is Beth's proper course of action under Kentucky agency law?
Correct Answer
B) Beth should decline to share Derek's maximum price, as it is confidential information protected by her fiduciary duty to Derek
As Derek's buyer's agent in Kentucky, Beth owes Derek full fiduciary duties, including the duty of confidentiality. Derek's maximum willingness to pay ($285,000) is confidential information that Beth is prohibited from disclosing to the seller or the seller's agent without Derek's consent. Sharing this information would be a breach of fiduciary duty and a potential violation of KRS Chapter 324.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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