Nevada licensee Rachel is a designated agent for buyer client Paul. Paul tells Rachel that he is in the middle of a divorce and needs to close quickly, and that his attorney has advised him that a fast close is critical to his financial settlement. Rachel's colleague at the same brokerage, Sam, represents the seller. The broker has confirmed a designated agency arrangement. Under Nevada law, may Rachel disclose Paul's urgency and divorce situation to Sam?
Correct Answer
A) No, because Paul's personal circumstances are confidential information that Rachel may not share with Sam or the seller's side
Under NRS 645.252(4), in a designated agency arrangement, each designated agent owes full fiduciary duties — including confidentiality — exclusively to their own client. The purpose of designated agency is precisely to preserve the confidentiality of each party's information even within the same brokerage. Paul's divorce situation, urgency to close, and financial pressures are confidential client information. Rachel may not disclose this to Sam, the seller's designated agent, or to the seller, as doing so would breach her fiduciary duty of confidentiality to Paul and undermine the entire purpose of the designated agency structure.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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