Salesperson Dan at Northern Plains Realty in Bismarck represents buyer Carla under a written buyer agency agreement. During a showing, the listing agent mentions that the seller would accept $10,000 less than the asking price. The listing agent did not authorize Dan to share this information with Carla. Under North Dakota agency law, what is Dan's obligation?

Correct Answer

B) Dan must disclose the seller's acceptable price to Carla because his fiduciary duty to his buyer client requires it.

Dan is Carla's buyer's agent and owes her full fiduciary duties, including the duty of disclosure. Information about the seller's willingness to accept less than the asking price is highly material to Carla's negotiating position and directly benefits her. Under North Dakota agency law, Dan's fiduciary duty to Carla requires him to share all information that could benefit her in the transaction. The fact that the listing agent may have inadvertently disclosed it does not change Dan's obligation to his own client — once he has the information, he must use it in Carla's best interest.