Carlos is representing a buyer in New York. He learns that the property his client wants to purchase is one where Carlos represented the seller as listing agent in a completed transaction six months ago. A different agent currently holds the listing. What is Carlos's primary obligation to his buyer client?
Correct Answer
B) Disclose the prior representation of the seller to his current buyer client so the buyer can assess whether it affects Carlos's ability to represent them effectively
Carlos's fiduciary duty of loyalty and full disclosure to his buyer client requires him to disclose the prior representation relationship. Although the prior transaction is complete and no statutory provision explicitly mandates disclosure of past representations from unrelated transactions, Carlos may retain confidential information about the seller's financial circumstances, motivations, or negotiating patterns from the prior engagement. This creates a material conflict that the buyer is entitled to know about in order to make an informed decision about whether to continue with Carlos as their agent. Disclosure allows the buyer to evaluate the situation and provide informed consent to proceed.
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In New York, when a real estate licensee provides the required agency disclosure form, what must the consumer do?
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