A buyer submits an offer on a home in Kirkland. The seller's designated broker is also representing the buyer in the same transaction. The seller and buyer both sign written consent forms acknowledging the dual agency relationship. Under RCW 18.86, which duty is the dual agent specifically PROHIBITED from performing for either party?
Correct Answer
B) Revealing one party's confidential financial information or motivation to the other party
Under RCW 18.86.060, a dual agent owes both parties the duty of confidentiality. Specifically, a dual agent is prohibited from disclosing one party's confidential information — such as the buyer's maximum willingness to pay or the seller's minimum acceptable price — to the other party. This duty of confidentiality is one of the few full duties that survives in dual agency, while the duty of loyalty is necessarily limited. Revealing confidential financial information or motivation is expressly prohibited.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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