Oregon broker Chen has a listing agreement with seller Huang. Broker Nguyen, working for a different brokerage, brings a buyer who submits an offer on Huang's property. During negotiations, Nguyen asks Chen directly whether Huang would accept $10,000 less than the asking price. How should Chen respond under Oregon agency law?
Correct Answer
C) Chen must decline to disclose Huang's confidential negotiating position, as it would breach his fiduciary duty to Huang
Under ORS 696.815, a seller's agent owes the seller the fiduciary duty of confidentiality, which includes protecting the seller's negotiating position. Disclosing the seller's minimum acceptable price to the buyer's agent—even indirectly—would be a direct breach of this duty. Chen must decline to reveal Huang's confidential information regardless of how the question is framed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
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