EstatePass
AgencyBuyer_agency_dutiesHARD

Broker Tasha represents buyer Greg as a client in Washington. Greg tells Tasha that he is purchasing the home for investment purposes and plans to rent it out, but he does not want the seller to know this. The listing broker asks Tasha why Greg is buying the property. Under RCW 18.86, how should Tasha handle this inquiry?

Correct Answer

C) Tasha must not disclose Greg's intended use because it is confidential client information under her duty of confidentiality

Under RCW 18.86.040(1)(c), Tasha owes Greg the duty of confidentiality, which requires her not to disclose the client's confidential information without authorization. Greg's reason for purchasing the property — his investment intent — is personal information that Greg has specifically asked Tasha to keep confidential. This information is not a material fact about the property itself, so Tasha has no duty to disclose it to the seller or listing broker. Protecting this information is a core duty of a buyer's agent.

Answer Options
A
Tasha must disclose Greg's intended use because the seller has a right to know the buyer's purpose
B
Tasha must disclose Greg's intended use because withholding it constitutes fraudulent misrepresentation
C
Tasha must not disclose Greg's intended use because it is confidential client information under her duty of confidentiality
D
Tasha may disclose Greg's intended use at her discretion since the buyer's purpose is not typically confidential

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Agency Question

Sign up free to unlock full analysis

Background Knowledge for Agency

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Agency

Sign up free to unlock full analysis

Common Mistakes to Avoid on Agency Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

buyer_agencyconfidentiality_dutyclient_informationnegotiationrcw_18_86

Related Concepts

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.

The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.

Was this explanation helpful?

More Agency Questions

People Also Study

Related Articles

Agency Questions

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing