Oregon broker Patel represents buyer Nguyen under a written buyer's agency agreement. During a showing, Nguyen confides to Patel that he is under pressure to relocate quickly due to a job transfer and would pay up to $50,000 over asking price if necessary. The seller later asks Patel directly whether Nguyen has a strong motivation to buy. Under Oregon law, what must Patel do?
Correct Answer
B) Decline to reveal Nguyen's confidential information because Patel owes Nguyen the fiduciary duty of confidentiality as his buyer's agent
Under ORS 696.815, a buyer's agent owes the client the fiduciary duty of confidentiality. Nguyen's motivation, urgency, and maximum willingness to pay are classic examples of confidential information that must be protected. Patel must decline to answer the seller's question. Disclosing this information without Nguyen's permission would be a serious breach of fiduciary duty that could expose Patel to disciplinary action and civil liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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