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Buyer Marcus approaches listing agent Priya at an open house in Helena, Montana. Marcus tells Priya he is not working with any agent and asks her detailed questions about the seller's motivation and lowest acceptable price. Priya has not disclosed her agency status. Under Montana law, what is Priya's primary obligation at this moment?

Correct Answer

D) Disclose her agency relationship to Marcus and clarify that she represents the seller, not Marcus.

Under MCA Title 37, Chapter 51, Montana licensees are required to disclose their agency status at the first substantive contact with a prospective buyer or seller. Priya must inform Marcus that she represents the seller so that Marcus understands she cannot advocate for his interests or keep the seller's information confidential from the seller. This disclosure requirement protects consumers from unknowingly sharing confidential information with an agent who represents the opposing party.

Answer Options
A
Immediately enter into a buyer representation agreement with Marcus before answering any questions.
B
Answer Marcus's questions honestly since she is the listing agent and must serve all parties equally.
C
Refer Marcus to another agent in her brokerage to avoid any conflict of interest.
D
Disclose her agency relationship to Marcus and clarify that she represents the seller, not Marcus.

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Related Topics & Key Terms

Key Terms:

agency_typesagency_disclosurelisting_agentfiduciary_duties

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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