Buyer's agent Tara is representing client Ben in purchasing a home in Nashville. The seller's agent, working for a different firm, informs Tara that the seller has accepted another offer but invites Ben to submit a backup offer. Ben tells Tara he is willing to pay up to $375,000, though he plans to offer $350,000 initially. Tara then calls the seller's agent and — hoping to secure the deal quickly — reveals that Ben is willing to go up to $375,000. Which of the following best describes Tara's conduct?
Correct Answer
A) Tara violated her fiduciary duty to Ben by disclosing his confidential maximum price to the opposing agent
Under Tenn. Code Ann. § 62-13-401 et seq., a buyer's agent owes fiduciary duties to the buyer, including the duty of confidentiality. Ben's maximum willingness to pay ($375,000) is confidential information that Ben shared with his agent for strategic negotiating purposes. By disclosing this to the seller's agent, Tara has directly undermined Ben's negotiating position and breached her duty of confidentiality and loyalty to him. This is a serious violation of Tennessee agency law.
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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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