During a multiple representation transaction in Wisconsin where no designated agency has been established, Broker Davis represents both seller Linda and buyer Mark. Mark asks Broker Davis what the lowest price Linda would accept. Under Wisconsin law, how should Broker Davis respond?
Correct Answer
B) Davis should refuse to disclose Linda's confidential information to Mark because of the duty of confidentiality owed to Linda
Under Wisconsin Administrative Code REEB 24, even in a multiple representation relationship, the broker retains the duty of confidentiality to each client. The broker may not disclose one client's confidential information — such as the seller's minimum acceptable price — to the other client. This is one of the key limitations of multiple representation: the broker cannot provide the same level of undivided advocacy as in single agency, and confidential information of each party must be protected.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
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