Agent Paul in Kalispell, Montana is working as a facilitator in a transaction between seller Wendy and buyer Tom. During negotiations, Tom asks Paul whether Wendy would accept an offer $20,000 below the asking price. Under Montana law, how should Paul respond?
Correct Answer
D) Paul may not disclose Wendy's confidential negotiating position but may present Tom's offer to Wendy.
Under Montana law, a facilitator does not represent either party and therefore cannot advocate for either side, but the facilitator still owes both parties honesty and fair dealing. A facilitator may not disclose one party's confidential information (such as the seller's minimum acceptable price or negotiating motivation) to the other party. Paul's proper role is to present offers and counteroffers between the parties without sharing confidential negotiating positions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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.
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