Sarah is a Michigan-licensed salesperson representing the Garcias, who are selling their home in Grand Rapids. During a showing, the buyer's agent asks Sarah whether the Garcias would accept less than the listed price of $285,000. Sarah knows the Garcias are relocating for a job and are highly motivated to sell quickly. What should Sarah do?
Correct Answer
B) Decline to reveal the sellers' motivation or financial urgency and refer the buyer's agent to submit any offer in writing
Sarah's duty of confidentiality under Michigan agency law (MCL 339.2512d) requires her to protect the Garcias' motivations, financial situation, and negotiating position from third parties including the buyer's agent. She must not reveal that the sellers are motivated or under time pressure, as this would harm the Garcias' negotiating position.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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