Licensee Tara is a buyer's agent for client Owen. During negotiations for a Somerville property, Owen tells Tara that he has a job offer in Seattle and may need to sell the property within two years. The seller's agent asks Tara whether Owen has any plans to resell the property soon. Under Massachusetts buyer agency law, how should Tara respond?
Correct Answer
D) Tara must decline to answer and explain that she cannot disclose confidential client information without Owen's consent
As Owen's buyer's agent, Tara owes Owen the fiduciary duty of confidentiality. Owen's potential relocation plans and intention to resell the property are confidential information that could harm his negotiating position if disclosed — for example, the seller might be less willing to negotiate on price knowing Owen is a short-term buyer. Tara must decline to answer the seller's agent's question and explain that she cannot disclose confidential client information without Owen's express consent. This is a core fiduciary obligation under Massachusetts buyer agency law.
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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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