Broker Sandra is representing seller Greg in Tacoma. An offer comes in from a buyer represented by another broker. The buyer's offer is $15,000 below the listing price, but the buyer's broker mentions privately to Sandra that the buyer could go up to full price if needed. Under RCW 18.86, what should Sandra do with this information?
Correct Answer
B) Disclose the buyer's maximum price to Greg because Sandra's duty of disclosure to her seller-client requires sharing all information relevant to the transaction.
Under RCW 18.86.040(1)(b), a seller's agent owes the seller a duty of disclosure, which requires the agent to disclose to the seller all information known to the agent that is material to the transaction and relevant to the seller's interests. The buyer's willingness to pay full price is highly material to Greg's negotiating position, and Sandra must share this information with her client. There is no privilege protecting information shared between brokers in a negotiation context.
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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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