Broker Wendy is a designated broker at Pacific Northwest Realty. Broker Alex in her firm represents the buyer, and Broker Kim, also in her firm, represents the seller in the same transaction. Both parties have signed written dual agency consent forms. During the transaction, the buyer reveals to Alex that he has a structural engineering background and believes the foundation has serious problems not disclosed by the seller. Under RCW 18.86, what are Alex's obligations?
Correct Answer
C) Alex must disclose the foundation concern to the buyer and recommend an inspection, but must maintain confidentiality of the buyer's professional identity and opinion from the seller
Under RCW 18.86.060, in a dual agency, the broker must maintain the confidentiality of each client's information that could harm their negotiating position. The buyer's professional opinion about the foundation is confidential information that could affect the seller's strategy if disclosed. Alex should advise the buyer to pursue a professional inspection (fulfilling the duty of reasonable care), but must not disclose the buyer's engineering background or opinion to the seller's side without the buyer's consent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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.
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