Michael is a Massachusetts salesperson representing buyer Claire. Claire makes an offer on a property listed by another salesperson, Anna, in the same brokerage. The broker has not established a designated agency policy. Claire and the seller both sign a dual agency consent form. After signing, Claire tells Michael she is desperate to buy this house and would pay $50,000 more than her offer if necessary. Under Massachusetts dual agency rules per 254 CMR 3.00, which statement correctly describes Michael's obligations?
Correct Answer
C) Michael must maintain Claire's confidentiality and cannot disclose her willingness to pay more to the seller or Anna.
Under 254 CMR 3.00, even in a disclosed dual agency relationship, the dual agent must not disclose either party's confidential negotiating information to the other party. Claire's statement that she would pay $50,000 more is exactly the type of confidential negotiating information that dual agency rules protect. Michael's duty of confidentiality to Claire survives the dual agency consent and he must not reveal this information to Anna, the seller, or the broker for the purpose of benefiting the other side.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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