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AgencyConfidentialityHARD

Under Rhode Island agency law, a licensee's duty of confidentiality to a former client:

Correct Answer

B) Continues indefinitely after the agency relationship ends

Under Rhode Island agency law and consistent with the NAR Code of Ethics, a licensee's duty of confidentiality to a client survives the termination of the agency relationship and continues indefinitely. Information disclosed by a client during the course of representation — such as motivation to sell, financial limitations, or personal circumstances — must be protected even after the listing expires, the transaction closes, or the relationship otherwise ends. This ongoing duty prevents former agents from using privileged client information to benefit themselves or others.

Answer Options
A
Ends when the listing agreement expires
B
Continues indefinitely after the agency relationship ends
C
Ends one year after the transaction closes
D
Ends when the client signs a written release

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Related Topics & Key Terms

Related Topics:

fiduciary dutiesagency terminationclient vs. customer dutiesNAR Code of EthicsRI agency law RIGL 5-20.6

Key Terms:

confidentialityfiduciary dutyagency terminationformer clientsurvives terminationpermanent duty

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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