Broker Diane in Lewiston, Maine is representing seller Frank in the sale of his home. A prospective buyer, unrepresented by any agent, asks Diane about the seller's motivation for selling and whether Frank would accept a lower offer. How should Diane respond under Maine agency law?
Correct Answer
A) Decline to share Frank's motivation or bottom-line price, but provide honest answers about the property's condition
As Frank's seller's agent, Diane owes Frank fiduciary duties including confidentiality. She must not disclose Frank's motivation for selling or his willingness to accept a lower price, as these are confidential negotiating facts that could harm Frank's position. However, Diane must still be honest and not misrepresent material facts about the property to the unrepresented buyer. This reflects the dual obligation of loyalty to the client and honesty to all parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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