Agent Monica at Alpine Realty in Lehi represents buyer Owen. During a showing of a property listed by a different brokerage, Owen confides to Monica that he is willing to pay up to $485,000 even though the list price is $465,000. The listing agent, Dan, later asks Monica if her buyer is motivated. How should Monica respond?
Correct Answer
D) Monica should state she cannot share her client's confidential negotiating information
As Owen's buyer's agent, Monica owes him fiduciary duties including confidentiality under Utah Code Ann. § 61-2f-401. Owen's willingness to pay above list price is confidential negotiating information that Monica must protect. The correct response is to decline to share any information that could undermine Owen's negotiating position. Monica may confirm she represents a buyer without disclosing confidential details.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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.
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