After a transaction closes, former client Mr. Huang asks his Michigan salesperson, Angela, to confirm whether he had disclosed his financial urgency to the other party during negotiations. Angela had learned of Mr. Huang's financial urgency during the agency relationship. Under Michigan law, how long does Angela's duty of confidentiality regarding this information last?
Correct Answer
D) Indefinitely, as the duty of confidentiality survives the termination of the agency relationship
Under Michigan agency law (MCL 339.2512d), the fiduciary duty of confidentiality does not expire at closing or upon termination of the agency agreement. A licensee's obligation to protect confidential client information — including financial situation, motivations, and negotiating strategy — survives the end of the agency relationship indefinitely. Angela may not disclose Mr. Huang's financial urgency to any third party, even after the transaction has closed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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.
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