Patricia is a Massachusetts broker who represents both the seller and the buyer in the same transaction as a disclosed dual agent, with written consent from both parties as required by 254 CMR 3.00. The seller asks Patricia to reveal the buyer's highest acceptable purchase price. Under dual agency rules, how must Patricia respond?
Correct Answer
C) Patricia must decline to disclose either party's confidential negotiating information to the other.
Under 254 CMR 3.00, a disclosed dual agent owes limited fiduciary duties to both clients simultaneously. One of the key restrictions in dual agency is that the dual agent must not disclose either party's confidential negotiating information — such as the buyer's maximum price or the seller's minimum acceptable price — to the other party. This limitation is a defining characteristic of dual agency in Massachusetts and must be explained in the dual agency consent agreement.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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