Agent Fiona is a dual agent representing both seller Greg and buyer Helen in the sale of a Rockville townhome. During negotiations, Helen privately tells Fiona that she is willing to pay up to $20,000 more than her initial offer if Greg refuses to budge. What is Fiona's obligation under Maryland dual agency rules?
Correct Answer
C) Fiona must keep Helen's maximum price confidential and cannot disclose it to Greg without Helen's permission
Under Maryland dual agency law, a dual agent owes duties of confidentiality to both principals. A dual agent must not disclose the buyer's willingness to pay more than the offered price to the seller, nor disclose the seller's willingness to accept less than the asking price to the buyer, without the respective party's permission. This is a core limitation of dual agency: the agent cannot use confidential information from one party to benefit the other.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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