Salesperson Maria represents buyer Kevin, who is interested in a Cambridge condominium listed by a different brokerage. During negotiations, Kevin tells Maria that he will accept the asking price of $750,000 if the seller does not accept his initial offer of $710,000. Under her agency relationship with Kevin, what is Maria's obligation regarding this information?
Correct Answer
B) Maria must keep Kevin's maximum price confidential, as it is material information she owes a duty to protect
As Kevin's buyer's agent under Massachusetts agency law and 254 CMR 3.00, Maria owes Kevin full fiduciary duties, including the duty of confidentiality. Kevin's willingness to pay up to $750,000 is confidential material information that could harm his negotiating position if disclosed to the seller or listing agent. Maria is legally and ethically obligated to keep this information confidential and may not disclose it to any other party without Kevin's explicit consent.
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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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