Nevada licensee Patricia is working with a buyer client, Marcus, who has told her in confidence that he is willing to pay up to $480,000 for a property even though his initial offer will be $450,000. The seller has listed the property at $465,000. While Patricia is showing Marcus the property, the listing agent asks Patricia directly: 'Is your buyer willing to go higher than his offer price?' How should Patricia respond under Nevada agency law?
Correct Answer
D) Patricia must decline to disclose Marcus's confidential price ceiling, as it is protected client information she owes a duty to keep confidential
Under NRS 645.252(1)(b), a buyer's agent owes a duty of confidentiality to the buyer client. Marcus's maximum willingness to pay ($480,000) is confidential information that Patricia learned in the course of her agency relationship. Disclosing this to the listing agent — even when asked directly — would be a breach of Patricia's fiduciary duty of confidentiality. Patricia must decline to answer or indicate that she cannot share her client's confidential information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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