Sarah is a licensed real estate salesperson in Minnesota acting as a buyer's agent for Marcus, who is purchasing a home in Duluth. During the transaction, Sarah learns that Marcus is willing to pay up to $380,000 for the property, though his initial offer is $355,000. Under Minnesota law, what is Sarah's fiduciary duty regarding this information?
Correct Answer
D) Sarah must keep Marcus's maximum price confidential and not disclose it to the seller or listing agent
Under Minn. Stat. Ch. 82, a buyer's agent owes the fiduciary duty of confidentiality to the buyer (client). This means Sarah must protect Marcus's confidential information, including his maximum willingness to pay, and must not disclose it to the seller, listing agent, or any other party. Disclosing this information would directly harm Marcus's negotiating position and would be a breach of fiduciary duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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