Agent Priya represents the seller of a townhouse in Rockville. During a Sunday open house, a prospective buyer named Kevin visits and asks Priya detailed questions about the seller's motivation for selling and whether the seller would accept less than the list price. How should Priya handle this situation regarding both her disclosure obligation and her fiduciary duty?
Correct Answer
D) Priya must provide Kevin with the brokerage relationship disclosure and must decline to reveal confidential seller information, as her duty runs to the seller
Priya has two obligations here. First, she must provide the Maryland Disclosure of Brokerage Relationship form to Kevin at this first substantive contact, which reveals she represents the seller. Second, as the seller's agent, she owes fiduciary duties to the seller including confidentiality, and must not disclose the seller's motivation or willingness to accept less than list price. The disclosure form helps Kevin understand that Priya works for the seller, not him.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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.
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