Broker Linda at Sunrise Realty has a signed buyer representation agreement with client Kevin. Kevin wants to buy a lakefront cottage that is listed by Sunrise Realty. Linda discloses the potential dual-agency situation and both Kevin and the seller, Mrs. Park, sign the dual-agency consent form. During negotiations, Mrs. Park privately tells Linda that she is going through a divorce and must sell quickly at any price. Which of the following actions should Linda take?
Correct Answer
D) Keep Mrs. Park's confidential information private and continue facilitating the negotiation neutrally
As a dual agent, Linda must maintain the confidentiality of each party's private information and remain neutral. Mrs. Park's financial urgency and divorce situation are confidential and were disclosed to Linda in her capacity as agent. Sharing this information with Kevin would breach Linda's duty of confidentiality to Mrs. Park under MCL 339.2517 and Michigan dual-agency obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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