Agent Rivera is a Michigan licensee representing buyer Okafor under a written buyer agency agreement. While touring a home listed by a different brokerage, the listing agent mentions that the seller recently received a job offer out of state and is highly motivated to sell within 30 days. Rivera knows this information would significantly strengthen Okafor's negotiating position. Under Michigan law, what is Rivera's obligation regarding this information?
Correct Answer
B) Rivera must disclose this information to Okafor because it is material to the transaction and Rivera owes Okafor a fiduciary duty of loyalty
As Okafor's buyer's agent, Rivera owes Okafor fiduciary duties including loyalty and full disclosure of all material information that could affect the buyer's interests or negotiating position. The seller's motivation and urgency to sell within 30 days is material information that Rivera learned in the course of representing Okafor. Rivera is obligated to disclose this to Okafor promptly. This information was not shared in a confidential attorney-client or similar privileged context.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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