Agent Hiro represents buyer clients who are interested in a property listed by a different brokerage. Before showing the property, Hiro provided his clients with the Maryland Disclosure of Brokerage Relationship form, which they signed. During negotiations, the listing agent calls Hiro and asks him to confirm whether his buyers have been pre-approved for financing and what their maximum budget is. How should Hiro respond?
Correct Answer
C) Hiro should decline to share both pieces of information without his clients' explicit permission, as both are confidential client information
As a buyer's agent in Maryland, Hiro owes fiduciary duties to his clients including confidentiality. Both the fact of pre-approval and the buyers' maximum budget are confidential client information. Hiro may not disclose either without his clients' explicit permission. Sharing either piece of information could harm the buyers' negotiating position. The proper response is to decline both disclosures unless and until the clients authorize the sharing of that information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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