Lisa is a Minnesota licensee acting as a facilitator in a home sale. The buyer asks Lisa to keep confidential the fact that he is willing to pay up to $320,000 for the property, even though the listing price is $299,000. What is Lisa's obligation under Minnesota law?
Correct Answer
C) Lisa is not required to keep the information confidential, as facilitators do not owe a fiduciary duty of confidentiality to either party
Under Minn. Stat. Ch. 82, a facilitator does not owe fiduciary duties — including the duty of confidentiality — to either party. Because Lisa is not the buyer's agent, she is not bound by a fiduciary obligation to keep the buyer's negotiating position confidential. However, she also has no duty to proactively disclose it to the seller, as she does not represent the seller either.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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