Broker Wendy operates a brokerage in Jefferson City, Missouri. She lists a property for seller Howard. Salesperson Greg, affiliated with Wendy's brokerage, is working with buyer Tina, who wants to purchase Howard's property. Wendy decides NOT to make a designation and instead personally manages both sides of the transaction with written consent from both Howard and Tina. Which of the following statements is correct regarding Wendy's fiduciary obligations?
Correct Answer
C) Wendy owes limited fiduciary duties to both Howard and Tina, and she must not disclose either party's confidential negotiating information to the other
When Wendy personally acts as a dual agent with written consent from both Howard and Tina, she owes fiduciary duties to both parties, but those duties are necessarily limited by the inherent conflict of interest. Most critically, Wendy cannot disclose Howard's minimum acceptable price to Tina, nor can she disclose Tina's maximum willingness to pay to Howard. She must treat both parties honestly and fairly, but her duty of undivided loyalty to either party is curtailed. This is the defining characteristic of dual agency under Missouri law.
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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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