Rachel is a Missouri buyer's agent working with first-time homebuyer James. During a showing, James confides to Rachel that he is willing to pay up to $285,000 for the property, even though his initial offer will be $260,000. The seller's agent later asks Rachel whether James has any flexibility on price. How should Rachel respond under Missouri agency law?
Correct Answer
C) Rachel must keep James's maximum price confidential as part of her fiduciary duty of confidentiality
As James's buyer's agent, Rachel owes him full fiduciary duties under Missouri law, including the duty of confidentiality. This duty requires Rachel to protect all information that James has shared in confidence, including his maximum willingness to pay. Disclosing this information to the seller's agent would directly harm James's negotiating position and constitute a breach of Rachel's fiduciary duty of loyalty and confidentiality under RSMo Chapter 339.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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