Broker Maya represents the seller of a home listed at $620,000. A buyer she has been working with makes an offer on the same property. Both parties sign a written dual agency consent agreement, and the transaction proceeds. During negotiations, the buyer confides to Maya that he is willing to pay up to $650,000 if necessary. Under RCW 18.86, which of the following best describes Maya's obligation regarding this information?
Correct Answer
B) Maya must maintain the confidentiality of the buyer's maximum price and may not disclose it to the seller without the buyer's permission.
Under RCW 18.86.060, when a licensee acts as a dual agent, the duty of confidentiality remains intact for both parties. A dual agent must not disclose one party's confidential information — including the buyer's willingness to pay more than the offering price — to the other party without that party's consent. While a dual agent's duty of loyalty is modified (limited) in a dual agency situation, the duty of confidentiality is explicitly preserved by Washington statute. This is a critical Washington-specific rule: loyalty is limited, but confidentiality is maintained.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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