David is a Washington broker representing buyer Sandra as a client. During negotiations, Sandra tells David in confidence that she is willing to pay up to $480,000 for the property, even though her initial offer is $450,000. The listing broker asks David directly whether Sandra has any flexibility in her offer price. How should David respond under RCW 18.86?
Correct Answer
D) David must not disclose Sandra's maximum price because he owes her the duty of confidentiality
Under RCW 18.86.040(1)(c), a broker representing a buyer as a client owes the duty of confidentiality, which requires the broker to not disclose the client's confidential information — including the buyer's maximum willingness to pay — without the client's authorization. Sandra's maximum price is classic confidential information that, if disclosed, would directly harm her negotiating position. David must protect this information regardless of who asks.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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