Broker Maria operates a large real estate firm in Boston. Her firm has a listing for a commercial property owned by XYZ Corp. A buyer, James, is also represented by a salesperson at Maria's firm. Maria proposes to handle the transaction as a dual agency. James and XYZ Corp both sign the required written consent forms. Shortly after, James asks Maria to reveal whether XYZ Corp has indicated any urgency to sell. Under Massachusetts dual agency rules, how should Maria respond?
Correct Answer
C) Maria must decline to share the seller's confidential motivations, as this would harm the seller's negotiating position
Under 254 CMR 3.00 and Massachusetts agency law, a dual agent retains an obligation to protect each party's confidential information. Even after both parties consent to dual agency, the licensee cannot disclose information that would damage either party's negotiating position — such as the seller's urgency or motivation to sell. The dual agency consent does not waive these confidentiality protections.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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