Agent Victor is representing both seller Carol and buyer James in the same transaction as a dual agent in Minnesota. During negotiations, James tells Victor that he is willing to pay up to $385,000 for the property, though his initial offer is $360,000. What must Victor do with this information under Minnesota law?
Correct Answer
A) Victor must keep James's maximum price confidential and not disclose it to Carol, as dual agency does not eliminate the duty to protect each party's confidential negotiating information
Under Minnesota law, even in a dual agency relationship, a licensee must not disclose one party's confidential negotiating information — such as the maximum price a buyer is willing to pay — to the other party. The informed written consent required for dual agency specifically acknowledges that the dual agent will not advocate for either party and will maintain confidentiality of each party's sensitive information. Victor must keep James's maximum price confidential from Carol, just as he must not disclose Carol's minimum acceptable price to James.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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