Maryland licensee Diane is a dual agent in a transaction where she represents both buyer Ken and seller Fran. During negotiations, Ken privately tells Diane that he is willing to pay up to $320,000 for the property, though his initial offer is $295,000. Fran later asks Diane directly whether Ken would go any higher. Under Maryland dual agency law, how must Diane respond?
Correct Answer
A) Diane must refuse to disclose Ken's confidential negotiating position to Fran and maintain neutrality
Under Maryland dual agency law, a dual agent may not disclose one party's confidential information—including negotiating position, motivation, or willingness to pay more—to the other party. Ken's statement that he is willing to pay up to $320,000 is confidential information that Diane received in her capacity as his agent. Disclosing this to Fran would breach Diane's duty of confidentiality to Ken. Diane must maintain neutrality and decline to reveal Ken's maximum price. This is required by Md. Code Ann., Bus. Occ. & Prof. § 17-530.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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.
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