Salesperson Yvonne represents a buyer who is making an offer on a home in Metairie. During negotiations, the buyer confides to Yvonne that he would be willing to pay up to $320,000, even though his initial offer is $295,000. The listing agent asks Yvonne directly whether her buyer has any flexibility above the offer price. What must Yvonne do under Louisiana agency disclosure and fiduciary duty rules?
Correct Answer
C) Decline to disclose the buyer's maximum price because it is confidential information protected by her fiduciary duty to the buyer
As the buyer's agent, Yvonne owes fiduciary duties to her buyer client, which include the duty of confidentiality. The buyer's willingness to pay up to $320,000 is confidential information that, if disclosed, would directly harm the buyer's negotiating position. Under Louisiana agency law (La. R.S. 37:1467), a buyer's agent must protect the client's confidential information and may not disclose it to the other party or their agent without the client's consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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