Carlos is a Massachusetts buyer's agent who learns that his client, Maria, is willing to pay up to $550,000 for a home but has offered $500,000. The listing agent asks Carlos directly what his client's maximum budget is. Under the fiduciary duty of confidentiality owed to Maria, what must Carlos do?
Correct Answer
A) Decline to reveal Maria's maximum budget because it is confidential client information.
Under the fiduciary duty of confidentiality recognized in 254 CMR 3.00 and Massachusetts agency law, a buyer's agent must protect the client's confidential information, including the client's maximum willingness to pay. Disclosing this information to the listing agent would directly harm Maria's negotiating position and breach Carlos's fiduciary duty to her.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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