Salesperson Gina is showing a property to buyer client Marcus. Marcus mentions that he is going through a bankruptcy and needs to close within 45 days or he will lose his financing. Later, the listing agent for the property calls Gina and asks about the buyer's qualifications and urgency. Gina's broker has a policy of full cooperation with listing agents. Which of the following correctly describes Gina's disclosure obligations under Louisiana law?
Correct Answer
A) Gina must not disclose Marcus's bankruptcy or his urgency because both are confidential client information protected by her fiduciary duty
As Marcus's buyer's agent, Gina owes him the fiduciary duty of confidentiality under Louisiana agency law (La. R.S. 37:1467). Both the bankruptcy and the 45-day urgency are confidential client facts that, if disclosed, would directly harm Marcus's negotiating position. A broker's internal cooperation policy cannot override a licensee's statutory fiduciary duty to the client. Gina must decline to share either piece of information with the listing agent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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