Agent Tom represents buyer Nancy in her search for a home in Greenville. During the course of their working relationship, Nancy tells Tom that she is going through a difficult divorce and must purchase a home quickly, and that she can go up to $350,000 if necessary. Tom later encounters the listing agent for a property Nancy is interested in. Under South Carolina agency law, Tom's duty of confidentiality requires him to:
Correct Answer
C) Keep Nancy's maximum budget and personal circumstances confidential from the listing agent
As Nancy's buyer's agent, Tom owes her a fiduciary duty of confidentiality. This duty requires Tom to protect information that could harm Nancy's negotiating position — specifically her maximum budget of $350,000 and her urgent personal circumstances (the divorce). Disclosing either piece of information to the listing agent would be a breach of fiduciary duty that could directly harm Nancy's ability to negotiate effectively. This duty is established under S.C. Code Ann. § 40-57-350.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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