Salesperson Mei represents buyer Kevin. Kevin makes an offer on a property listed by a different firm. The listing agent asks Mei to confirm in writing whether Kevin has been pre-approved for financing and the name of Kevin's lender. Kevin has not authorized Mei to share this information. Mei believes disclosing it would help Kevin's offer appear stronger. Under Virginia agency law, what should Mei do?
Correct Answer
C) Decline to disclose any financing details without Kevin's explicit authorization, as this is confidential client information
Under Va. Code § 54.1-2131, a buyer's agent in Virginia owes the client a strict duty of confidentiality regarding financial information and motivations. Kevin's pre-approval status and lender information are confidential facts that Mei may not disclose without Kevin's explicit authorization. The fact that disclosure might strengthen Kevin's offer does not override the confidentiality duty; Mei must seek Kevin's consent before sharing any such information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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