A buyer tells the buyer's agent that the buyer must close within 45 days because of a lease expiration. The buyer's agent shares this timeline with the listing agent to explain the urgency. Has the buyer's agent violated any duty?
Correct Answer
D) Yes, the client's motivation and deadline are confidential
A buyer's agent owes the buyer confidentiality about information that could weaken the buyer's bargaining position, and a hard deadline created by an expiring lease is exactly that kind of information. Disclosing it hands the seller leverage on price and terms, so it may be released only with the buyer's consent. The duty of confidentiality does not extend to material facts about the property or to the buyer's ability to perform if disclosure of those is required, but a deadline that only pressures the buyer is not such a fact.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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.
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