Agent Kim represents buyer Nguyen under a signed buyer brokerage agreement in Virginia. During negotiations, Nguyen tells Kim that he is willing to pay up to $450,000 for the home, although his initial offer is $415,000. The seller's agent asks Kim whether Nguyen has any flexibility on price. Under Virginia law, what must Kim do?
Correct Answer
B) Refuse to disclose Nguyen's maximum price because it is confidential information protected by the fiduciary duty of confidentiality.
Under Va. Code § 54.1-2131, a buyer's agent owes the client the fiduciary duty of confidentiality, which requires the agent to protect information that could harm the client's negotiating position. Nguyen's willingness to pay up to $450,000 is precisely the type of confidential information that Kim must not disclose to the seller or the seller's agent, as disclosure would directly undermine Nguyen's ability to negotiate effectively.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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