Salesperson Greg is a buyer's agent for client Anna. While showing Anna a property, Greg learns from the listing agent that the seller has already received another offer and is under financial pressure to sell quickly. Greg does not disclose this information to Anna because he assumes it is confidential seller information. Under Massachusetts law, has Greg fulfilled his obligations to Anna?
Correct Answer
A) No, because as Anna's buyer's agent, Greg has a fiduciary duty to disclose all information that could benefit Anna in the transaction
As Anna's buyer's agent, Greg owes Anna full fiduciary duties, including the duty of disclosure. Information that the seller is under financial pressure and has received another offer is material information that could significantly benefit Anna in negotiations — for example, by informing her offer strategy or negotiating terms. Greg's duty of loyalty and disclosure to his buyer client requires him to share this information. The seller's motivation is not protected confidential information that Greg is obligated to keep from his own client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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