Washington broker James represents seller Patricia in listing her Bellevue condominium. A buyer's broker, Diana, contacts James to schedule a showing. During their phone call, Diana mentions that her buyer client is highly motivated and must close within 30 days due to a job relocation. James relays this information to Patricia. Under RCW 18.86, which statement BEST describes James's conduct?
Correct Answer
D) James acted properly because disclosing the buyer's motivation to his seller client fulfills his duty of loyalty and disclosure
Under RCW 18.86, James owes his client Patricia the duties of loyalty and disclosure of material facts. A buyer's urgent timeline and strong motivation are material facts that directly affect Patricia's negotiating position and the terms she might accept. James is obligated to disclose this information to Patricia. Diana, as the buyer's broker, should not have voluntarily disclosed this information to the listing broker if she wished to protect her client.
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