Michigan salesperson Dana is affiliated with broker West. Dana has been working with buyer couple the Garcias under a buyer agency agreement. The Garcias make an offer on a home listed by broker West's firm. Broker West recognizes that his firm now represents both the seller and the Garcias. Broker West obtains informed written consent from both parties and designates Dana to represent the Garcias and salesperson Kyle to represent the seller. Later, the Garcias ask Dana to tell them the seller's bottom-line price. What should Dana do?
Correct Answer
D) Decline to share the information because in designated agency, Dana must maintain confidentiality of the seller's negotiating position
Even in a designated agency arrangement, Michigan law requires that each designated agent maintain confidentiality of the opposing party's negotiating position. Although Dana represents the Garcias, she may not access or disclose the seller's confidential information (such as the bottom-line price) that Kyle holds in his role as the seller's designated agent. The designated agency structure is designed to protect each party's confidential information from 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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