Affiliate broker Diane represents seller Bob in the listing of his Murfreesboro home. Buyer client Wendy, who is also represented by Diane, submits an offer on Bob's home. Both Bob and Wendy sign the TREC dual agency consent form. During negotiations, Wendy tells Diane that she would accept a price $15,000 higher than her initial offer if Bob counters. What must Diane do with this information under Tennessee dual agency rules?
Correct Answer
B) Keep Wendy's maximum price confidential and not share it with Bob, because it is confidential client information
Even in a dual agency relationship, a Tennessee licensee must maintain the confidentiality of each client's sensitive information. Wendy's maximum willingness to pay is confidential client information that Diane may not disclose to Bob. Tennessee's dual agency framework reduces but does not eliminate the duty of confidentiality owed to each party.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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.
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