A seller's agent represents a client who has disclosed a personal reason for selling and explicitly instructed the agent to keep it confidential. During negotiations, the buyer's agent directly asks the seller's agent why the seller is selling. Which response best satisfies both the agent's duty of confidentiality to the seller and the duty of honest dealing with all parties?

Correct Answer

C) State that the seller's reasons for selling are personal and confidential

Under New York agency law, a seller's agent owes the client a fiduciary duty of confidentiality over personal circumstances the client has asked to keep private. At the same time, the agent has a duty of honest dealing with all parties and may not make false statements. Option C satisfies both obligations: it truthfully acknowledges that the information exists but is confidential, without revealing the protected information or making a misleading statement. This is the only response that is simultaneously truthful and protective of the client's confidential information.