A Washington buyer's broker, acting as a dual agent with written consent from both parties under RCW 18.86, is facilitating a transaction. The buyer submits an offer at $490,000. Before presenting the offer, the dual agent learns the seller has told the listing side she would accept as low as $470,000. What must the dual agent do with this information?
Correct Answer
D) Present the offer at $490,000 without disclosing the seller's minimum price, as confidentiality of that information is required.
Under RCW 18.86.060, a dual agent in Washington owes duties to both the buyer and the seller, but those duties are modified. Specifically, a dual agent must not disclose to the buyer that the seller will accept a price less than the listing price, and must not disclose to the seller that the buyer will pay more than the offered price. The seller's minimum acceptable price of $470,000 is confidential information that the dual agent is statutorily prohibited from sharing with the buyer. The dual agent must present the offer at $490,000 without revealing this information.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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