Agent Wendy represents buyer Luis in purchasing a home in Millcreek, Utah. The seller's agent, Craig, is from a different brokerage. During negotiations, Craig tells Wendy that the seller will not accept any offer contingent on the sale of Luis's current home. Wendy does not pass this information to Luis because she believes it will discourage him. Luis submits a contingent offer, which is rejected. Luis later learns that Wendy withheld Craig's statement. Which duty did Wendy most directly violate under Utah agency law?
Correct Answer
C) The duty of disclosure, by withholding material information relevant to Luis's decision-making
Under Utah Code Ann. § 61-2f-401, a buyer's agent owes the client a duty of disclosure, which requires the agent to promptly communicate all material information relevant to the client's decisions. The seller's stated unwillingness to accept a contingent offer is directly material to Luis's offer strategy — it was information Luis needed to make an informed decision. Wendy's decision to withhold this information, even with good intentions, is a clear breach of the duty of disclosure owed to her client.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
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.
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