A commercial broker represents a landlord in leasing office space. During negotiations, the tenant discloses to the broker that she would pay up to $35 per square foot, even though the listed rate is $30. What must the broker do with this information?
Correct Answer
D) Disclose the tenant's willingness to pay more to the landlord, because the broker owes fiduciary duties to the landlord
As the landlord's agent, the broker owes fiduciary duties to the landlord, including the duty of disclosure. Material information that could benefit the landlord in negotiations—such as the tenant's willingness to pay more—must be shared with the principal.
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