Agent Lisa in Minot represents buyer Paul under a written buyer agency agreement. The seller of the property Paul wants to purchase is unrepresented. During negotiations, Paul asks Lisa to share the seller's apparent motivation for selling quickly. Lisa knows the seller recently lost his job. Under North Dakota agency law, what is Lisa's obligation regarding this information?
Correct Answer
A) Lisa must disclose the seller's motivation to Paul because she is a buyer's agent and owes Paul full fiduciary duties.
As Paul's buyer's agent, Lisa owes full fiduciary duties to Paul, including the duty of loyalty and the duty to disclose all information relevant to the transaction that could benefit Paul. The seller's motivation for selling quickly — financial hardship — is directly relevant to Paul's negotiating strategy. Under North Dakota agency law, a buyer's agent must act in the buyer's best interest and disclose material information that could affect the buyer's decision or negotiating position.
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