Agent Rosa represents seller Ben in the sale of a St. Paul duplex. During negotiations, buyer Gina asks Rosa directly, 'What is the lowest price Ben will accept?' Under Minnesota law, how should Rosa respond?
Correct Answer
C) Rosa must decline to reveal Ben's minimum acceptable price because it is confidential information protected by her fiduciary duty of loyalty to Ben
As Ben's seller's agent, Rosa owes Ben fiduciary duties including loyalty and confidentiality. The seller's minimum acceptable price is a quintessential example of confidential information that, if disclosed, would directly harm the seller's negotiating position. Under Minnesota law, a seller's agent must not disclose such information to the buyer or buyer's agent without the seller's explicit permission. Rosa must decline to answer Gina's question.
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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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