Maria is a Virginia licensee representing the buyer, Carlos, in the purchase of a home listed at $425,000. During negotiations, Carlos confides to Maria that he is willing to pay up to $450,000 if necessary. The listing agent calls Maria and asks if Carlos has any flexibility on price. What is Maria's fiduciary obligation in this situation?
Correct Answer
A) Refuse to answer and protect Carlos's maximum price as confidential information
Maria owes Carlos the fiduciary duty of confidentiality under Virginia agency law (Va. Code § 54.1-2132). Carlos's maximum willingness to pay is a classic example of confidential negotiating information that the buyer's agent must protect. Disclosing this to the listing agent would directly harm Carlos's bargaining position and constitute a breach of fiduciary duty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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