Broker Frank in Springfield, Missouri operates a large brokerage. Salesperson Nina is representing seller Gail in a listing, and salesperson Oscar is representing buyer Dan for the same property. Frank has properly designated Nina and Oscar as the respective agents. Oscar discovers that Dan has a personal bankruptcy filing from three years ago that might affect financing. Under Missouri's designated agency framework, which of the following correctly describes Oscar's obligation regarding this information?
Correct Answer
D) Oscar must keep Dan's bankruptcy confidential from Gail and Nina as part of his fiduciary duty to Dan
Under Missouri's designated agency framework, Oscar owes full fiduciary duties—including confidentiality—exclusively to his designated client, Dan. Dan's prior bankruptcy is confidential client information that could affect his negotiating position and is not required to be disclosed to the seller or the seller's designated agent. Oscar's designation means he functions as if he were a traditional single-client buyer's agent; he must protect Dan's confidential information from Gail, Nina, and even Frank in his capacity as the seller-side supervisor.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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