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Pa Agency Consumer NoticeDesignated_agency_paMEDIUM

A Pennsylvania brokerage has 12 agents. Agent Davis lists a property, and Agent Baker has a buyer interested in that listing. The broker of record implements designated agency. During the transaction, Agent Baker overhears Agent Davis discussing the seller's motivation with the office manager. What should Agent Baker do?

Correct Answer

B) Inform the broker of record about the potential confidentiality breach so the broker can take corrective action

Agent Baker should inform the broker of record about the potential breach of confidentiality. The broker of record supervises the designated agency arrangement and is responsible for ensuring confidential information is not shared between designated agents. The broker can take corrective action.

Answer Options
A
Use the information to help the buyer negotiate a better price since it was overheard, not directly shared
B
Inform the broker of record about the potential confidentiality breach so the broker can take corrective action
C
Immediately tell the buyer everything overheard to fulfill the duty of disclosure
D
Ignore the information and continue as if nothing was overheard

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Related Topics & Key Terms

Key Terms:

designated_agencyconfidentiality_breachbroker_notificationinformation_barrier

Related Concepts

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

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