Oregon broker Reyes has been acting as a seller's agent for owner Callahan under a valid listing agreement. Buyer Mendez approaches Reyes and asks to be represented as a buyer's agent in purchasing Callahan's property. Reyes obtains written disclosed limited agency consent from both Callahan and Mendez and proceeds. During escrow, Callahan privately tells Reyes that he would accept $15,000 less than the listed price due to a financial emergency. Mendez then asks Reyes if there is any flexibility in the price. Under Oregon law, which of the following best describes Reyes's obligation?
Correct Answer
A) Reyes must decline to reveal Callahan's confidential negotiating information to Mendez, even while acting as a disclosed limited agent
Under ORS 696.840, even after obtaining written consent for a disclosed limited agency, the licensee is expressly prohibited from disclosing one party's confidential information—including negotiating motivation and price flexibility—to the other party without that party's permission. Callahan's financial emergency and willingness to accept less are confidential. The fact that both parties consented to disclosed limited agency does not authorize Reyes to reveal confidential information; it only permits Reyes to represent both parties with reduced advocacy duties. Confidentiality protections remain intact.
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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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