Broker Nguyen represents seller Hoffman in the sale of a Kirkland property. Buyer Thompson, unrepresented, makes an offer. During negotiations, Thompson asks Nguyen directly: 'Is the seller willing to accept $450,000?' The seller's actual bottom line is $460,000. Under RCW 18.86, how should Nguyen respond?
Correct Answer
D) Nguyen may decline to answer or deflect the question to protect the seller's confidential negotiating position.
Under RCW 18.86.040(1)(c), the seller's agent owes the seller a duty of confidentiality, which specifically includes protecting the seller's negotiating position, including the seller's minimum acceptable price. While Nguyen owes Thompson (as a customer) good faith and honesty under RCW 18.86.050, this does not require disclosing the seller's confidential bottom line. Nguyen may lawfully decline to answer or indicate that the seller's minimum price is confidential. The duty of good faith prohibits active deception but does not compel disclosure of the client's confidential information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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