New Jersey salesperson Marcus is working with buyer Olivia to find a home. Olivia makes an offer on a property listed by a different brokerage firm. During negotiations, Marcus learns through conversations with Olivia that she is willing to pay up to $30,000 more than her initial offer if necessary. The listing agent asks Marcus how high Olivia will go. What is Marcus's obligation under New Jersey agency law?
Correct Answer
C) Marcus must keep Olivia's maximum price confidential because it is privileged information belonging to his client
Under New Jersey agency law, Marcus is acting as Olivia's buyer's agent and owes her full fiduciary duties, including the duty of confidentiality. A buyer's willingness to pay more than the offered price is classic confidential client information — disclosing it would directly harm Olivia's negotiating position and breach Marcus's fiduciary duty. Marcus must refuse to disclose this information to the listing agent regardless of what the listing agent asks or offers in return.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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