Broker Janet at Prairie View Realty in Fargo is approached by both the seller and the buyer of a property, each asking Janet to represent them. Janet agrees to represent both parties and obtains written consent from each. During the transaction, the buyer privately tells Janet that he would be willing to pay $15,000 more than his initial offer if the seller rejects it. Under North Dakota dual agency rules, what must Janet do with this information?
Correct Answer
D) Keep the buyer's maximum price confidential and not share it with the seller.
Under North Dakota Administrative Code Title 70, a dual agent owes duties to both parties but has a specific obligation to keep each party's confidential negotiating information private from the other. The buyer's willingness to pay more than the offered price is classic confidential negotiating information. Disclosing it to the seller would harm the buyer and violate the dual agent's duty of confidentiality. In dual agency, the licensee cannot use one client's confidential information to benefit the other.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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.
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