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Pa Agency Consumer NoticeBuyer_agent_dutiesMEDIUM

A buyer's agent in Pennsylvania learns through a personal friendship that the seller is going through a divorce and is desperate to sell quickly. The buyer asks the agent about the seller's motivation. Under PA law, what should the buyer's agent do?

Correct Answer

D) Share only that the seller appears motivated without revealing the personal details about the divorce

The buyer's agent owes loyalty to the buyer and should share relevant information about the seller's motivation level. However, the agent should exercise professional judgment by sharing the general observation that the seller appears motivated without revealing private personal details like a divorce, which could raise ethical concerns and potential liability.

Answer Options
A
Disclose the seller's divorce and urgency because the duty of loyalty requires sharing all information that benefits the buyer
B
Advise the buyer to hire a private investigator to confirm the seller's financial situation
C
Refuse to discuss the seller's motivation because it constitutes confidential information regardless of how the agent learned it
D
Share only that the seller appears motivated without revealing the personal details about the divorce

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Related Topics & Key Terms

Key Terms:

buyer_agentseller_motivationloyaltyprofessional_ethics

Related Concepts

An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.

An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.

The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.

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