Washington broker Dana is acting as a dual agent with written consent from both buyer Kyle and seller Pat. During the transaction, Kyle asks Dana to share Pat's lowest acceptable price. Under RCW 18.86, how does Dana's duty of confidentiality apply in this dual agency situation?
Correct Answer
A) Dana must not share Pat's lowest price with Kyle because the duty of confidentiality protects both clients even in dual agency
Under RCW 18.86.060, a dual agent owes the duty of confidentiality to both clients. Even though Dana represents both Kyle and Pat, she must not disclose one client's confidential information to the other. Pat's lowest acceptable price is confidential information that would harm Pat's negotiating position if disclosed to Kyle. This is one of the key ways dual agency modifies the standard client duties: the duty of loyalty is limited, but the duty of confidentiality is maintained for both parties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
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