Salesperson Fiona represents buyer client Wei in a transaction where Fiona's brokerage also holds the listing. The parties agree to designated agency. Which of the following is Fiona NOT permitted to do as Wei's designated buyer's agent under Massachusetts designated agency rules?
Correct Answer
A) Disclose to Wei the seller's lowest acceptable price if Fiona learned it in her capacity as a firm agent
Under Massachusetts designated agency rules (254 CMR 3.00), even though Fiona owes full fiduciary duties to Wei, she is NOT permitted to disclose the seller's confidential information — such as the seller's lowest acceptable price — to Wei. This information was learned by the firm in its capacity as the seller's agent, and the designated agency arrangement requires that confidential information belonging to each party be protected from the other. Disclosing the seller's bottom line would breach the firm's duty of confidentiality to the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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