A broker’s fiduciary obligation to protect a seller’s confidential information continues:
Question & Answer
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after the term of the listing agreement.
Option A is incorrect because fiduciary duties, including confidentiality, continue beyond the term of the listing agreement. The listing agreement establishes the business relationship, but the broker's legal obligations persist even after this formal contract ends.
for the term of the listing agreement.
Option B is incorrect because confidentiality obligations extend beyond the term of the listing agreement. While the listing agreement governs the brokerage relationship, the fiduciary duty of confidentiality continues for a legally mandated period after the agreement terminates.
until the close of escrow.
Option C is incorrect because confidentiality protection continues beyond the close of escrow in California. While escrow marks the completion of the transaction, the law recognizes that sensitive information may still be valuable and potentially harmful if disclosed after escrow closes.
for two years after the close of escrow. 206 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition
Why is this correct?
In California, a broker's fiduciary duty of confidentiality to a seller continues for two years after the close of escrow per Business and Professions Code §10133. This extended protection ensures sensitive information about the seller's motivation, pricing strategy, and property conditions cannot be used to the seller's disadvantage in future transactions.
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