Broker Kim at Badger Realty represents both seller Frank and buyer Sarah in the same transaction under a written multiple representation agreement signed by both parties. During negotiations, Sarah tells Kim in confidence that she is willing to pay up to $30,000 more than her initial offer. Frank later asks Kim directly whether Sarah has more money to offer. Under Wisconsin law, what should Kim do?
Correct Answer
B) Kim must refuse to disclose Sarah's confidential information to Frank, even in a multiple representation relationship
Under Wisconsin Administrative Code REEB 24, even in a properly established multiple representation relationship, the broker retains the duty of confidentiality to each client. Sarah's disclosure of her maximum willingness to pay is confidential client information. Kim may not disclose this to Frank regardless of the multiple representation arrangement. The written consent to multiple representation does not waive the confidentiality obligations owed to each party; it only permits the broker to represent both parties simultaneously.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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.
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