Missouri salesperson Renee is showing a property to buyer couple, the Garcias, who have not signed a buyer representation agreement. During the showing, Mrs. Garcia mentions that they recently sold their previous home for a large profit and can pay cash well above the asking price. Later, Renee reports this information to her seller-client. The Garcias later file a complaint with MREC. Which of the following best describes the legal situation under Missouri agency law?
Correct Answer
A) Renee acted properly because the Garcias are customers, not clients, and Renee's duty to share useful information runs to her seller-client.
Under Missouri agency law (RSMo § 339.730), the Garcias are customers — not clients — because they have no representation agreement with Renee. Renee's fiduciary duties, including the duty to promote the client's best interests, run to her seller-client. Information that a customer voluntarily shares during a showing that is relevant to the transaction (such as financial capacity) may be shared with the seller-client as part of Renee's duty of loyalty and disclosure to that client. This is a key distinction between client and customer status in Missouri: customers do not receive the fiduciary protection of confidentiality.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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.
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