Vermont licensee Mark is a seller's agent for a home listed at $320,000. During a showing, buyer Dana mentions to Mark that she loves the house and would pay up to $340,000 if necessary. Dana is not represented by any agent. What is Mark's obligation regarding this information under Vermont agency law?
Correct Answer
B) Disclose Dana's maximum price to his seller client, because he owes the seller full fiduciary duties including loyalty
Mark is a seller's agent and owes full fiduciary duties to the seller, including the duty of loyalty and the duty to disclose material information that benefits the seller. Dana's statement that she would pay up to $340,000 is directly relevant to the seller's negotiating position and must be disclosed to the seller. Vermont agency law under 26 V.S.A. Chapter 41 does not create a duty of confidentiality toward unrepresented parties on matters that benefit the agent's client.
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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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