Michigan salesperson Decker is affiliated with broker Yuen. Decker has a written buyer agency agreement with buyer Wallace. Wallace makes an offer on a home listed by broker Yuen's firm. Broker Yuen discloses the potential dual agency to both Wallace and the seller and obtains written consent from both parties to proceed as a dual agency brokerage with Decker as a designated buyer's agent. After the consent is signed, Wallace tells Decker that he has discovered the seller is facing foreclosure within 60 days and asks Decker to use this information to aggressively lower the offer price. Decker did not learn this information through his role as an agent—Wallace found it in public court records. What is Decker's most appropriate course of action?

Question

AgencyAgency_typesHARD

Michigan salesperson Decker is affiliated with broker Yuen. Decker has a written buyer agency agreement with buyer Wallace. Wallace makes an offer on a home listed by broker Yuen's firm. Broker Yuen discloses the potential dual agency to both Wallace and the seller and obtains written consent from both parties to proceed as a dual agency brokerage with Decker as a designated buyer's agent. After the consent is signed, Wallace tells Decker that he has discovered the seller is facing foreclosure within 60 days and asks Decker to use this information to aggressively lower the offer price. Decker did not learn this information through his role as an agent—Wallace found it in public court records. What is Decker's most appropriate course of action?

Answer Options

A

Decline to use the information because in a designated agency arrangement, Decker may not use any external information to benefit the buyer at the seller's expense

B

Use the information to advise Wallace on negotiating strategy because it is publicly available and Decker's duty of loyalty to Wallace as his designated buyer's agent applies

C

Immediately disclose the foreclosure information to the seller's designated agent because material facts must be shared with all parties in a dual agency brokerage

D

Withdraw from the transaction because using public court records in negotiation constitutes an ethical violation under Michigan law