Affiliate Broker Nicole is representing buyer client James in a purchase transaction. James asks Nicole whether she is required to share with the seller's agent any information James has told her about his personal finances and his urgency to move before a school enrollment deadline. Which of the following most accurately describes Nicole's obligations under Tennessee's agency law?
Correct Answer
D) Nicole must keep James's financial information and personal motivation confidential as part of her fiduciary duty to him
Under Tenn. Code Ann. § 62-13-401 et seq., a buyer's agent owes fiduciary duties to the buyer, including the duty of confidentiality. James's financial details and personal motivation (the school enrollment deadline) are confidential client information that Nicole must protect. Disclosing this information to the seller's agent would undermine James's negotiating position and breach Nicole's duty of loyalty and confidentiality to her client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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