Nevada broker James represents both the seller and the buyer in a transaction as a disclosed limited dual agent with written consent from both parties. During negotiations, the buyer privately tells James that she would pay up to $380,000 for the property, though her initial offer is $355,000. The seller later asks James directly whether the buyer would go higher. What must James do?
Correct Answer
A) Decline to reveal the buyer's maximum price, as this is confidential information protected under limited dual agency rules
Under NRS 645.255(3), a limited dual agent is expressly prohibited from disclosing the price a buyer is willing to pay beyond the offered price, even to the seller who is also the agent's client. The buyer's $380,000 ceiling is confidential information that James obtained in his capacity as the buyer's agent, and this confidentiality obligation survives the limited dual agency arrangement. James must decline to answer the seller's question.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
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