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Broker Sandra is a seller's agent representing the Johnsons in the sale of their Seattle home. A prospective buyer, Mr. Chen, visits the property unrepresented and asks Sandra several questions about the home's condition and the sellers' motivation. Sandra shows him the property and discusses the neighborhood. Under Washington's agency law, which statement BEST describes Sandra's obligations to Mr. Chen?

Correct Answer

B) Sandra must provide Mr. Chen with the agency disclosure pamphlet and owes him good faith and honesty as a customer

Under RCW 18.86, a licensee acting as a seller's agent must provide the agency disclosure pamphlet to an unrepresented buyer at first substantive contact. While Sandra's fiduciary-level duties (loyalty, confidentiality, etc.) run to her clients, the Johnsons, she still owes all customers — including Mr. Chen — the duties of good faith and honesty under RCW 18.86.040. She must also provide the pamphlet at this first substantive contact.

Answer Options
A
Sandra owes Mr. Chen full fiduciary duties because he is physically present at the property
B
Sandra must provide Mr. Chen with the agency disclosure pamphlet and owes him good faith and honesty as a customer
C
Sandra has no obligations to Mr. Chen because her fiduciary duties run exclusively to the Johnsons
D
Sandra must obtain written consent from the Johnsons before speaking with Mr. Chen about the property

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Related Topics & Key Terms

Key Terms:

agency_disclosurecustomer_dutiesseller_agentrcw_18_86good_faith_honesty
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