Michigan salesperson Renee represents buyer Carlos. During negotiations on a Traverse City home, Carlos confides to Renee that he is willing to pay up to $320,000 for the property, even though his initial offer is $295,000. The seller's agent asks Renee if Carlos has any flexibility on price. What must Renee do under Michigan agency law?
Correct Answer
D) Maintain confidentiality and not disclose Carlos's maximum willingness to pay, as it is privileged client information
As Carlos's buyer's agent, Renee owes him a fiduciary duty of confidentiality under Michigan agency law. A buyer's motivation, financial capacity, and willingness to pay above the offered price are confidential client communications that the buyer's agent must protect. Disclosing Carlos's maximum price would be a breach of fiduciary duty and a violation of Michigan's agency obligations.
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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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