Broker Dana represents seller Olivia in the sale of her Bellevue home listed at $850,000. During a showing, buyer's agent Marco asks Dana whether the seller has received any other offers. Dana knows that Olivia has received one offer that was rejected. Under RCW 18.86, how should Dana respond?
Correct Answer
A) Dana should disclose that there was a prior offer only if Olivia has given her permission to do so
Under RCW 18.86.040, a seller's agent owes the client a duty of confidentiality, which includes information about the seller's negotiating position. The existence of a rejected prior offer is confidential information that could affect Marco's strategy. Dana may only disclose this information if Olivia has given her express permission to do so. Without Olivia's consent, Dana should decline to answer or indicate that she cannot comment on the seller's offer history.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
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