Carlos is a Louisiana licensed salesperson whose broker represents the seller of a home. During a showing, the buyer asks Carlos, 'What is the lowest price the seller would accept?' Under Louisiana agency law, how should Carlos respond?
Correct Answer
B) Carlos should decline to answer because, as a subagent of the seller, he owes the seller a duty of confidentiality.
As a subagent of the seller (through his broker's listing agreement), Carlos owes the seller fiduciary duties including confidentiality. Disclosing the seller's minimum acceptable price would be a breach of the duty of confidentiality owed to the seller under Louisiana agency law and LREC regulations. Carlos must decline to answer this question.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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