A seller in Ashland, Oregon is in a disclosed limited agency relationship with Broker Chen, who also represents the buyer. The buyer submits an offer at $500,000. The seller wants to counter at $520,000 but asks Broker Chen what price the buyer would 'really' pay. Under Oregon's disclosed limited agency rules, how must Broker Chen respond?
Correct Answer
A) Broker Chen must refuse to disclose the buyer's confidential price limit, as disclosed limited agency restricts the duty to share confidential information of either party.
Under Oregon's Disclosed Limited Agency statute (ORS 696.800 to 696.890), when a licensee represents both the buyer and seller in the same transaction with written informed consent, the licensee's fiduciary duties are specifically limited. A disclosed limited agent must NOT disclose to the seller the buyer's maximum price the buyer is willing to pay, nor disclose to the buyer the minimum price the seller will accept. This protection of each party's confidential negotiating information is a core feature of Oregon's disclosed limited agency framework and distinguishes it from full representation. Broker Chen must decline to share this confidential information with the seller.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
Equitable title is the buyer's interest in a property after a purchase contract is signed but before closing, giving the buyer the right to acquire legal title in the future. The seller retains legal title until the deed is delivered at closing.
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
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