California Real Estate SalespersonLaws of Agency and Fiduciary DutiesMedium
A buyer's agent, without the buyer's knowledge or consent, tells the listing agent the maximum price the buyer is willing to pay. This disclosure breaches which duty owed to the buyer?
- ANo duty, since the listing agent is entitled to know this information
- BThe duty of confidentiality owed to the buyer as the agent's client
- CThe duty of reasonable skill and care
- DThe duty of disclosure to non-clients
Show answer & explanationAnswer & explanation
Correct answer: B. The duty of confidentiality owed to the buyer as the agent's client
A single agent representing only the buyer owes strict confidentiality regarding the buyer's negotiating position, including maximum price, unless the buyer authorizes disclosure. Revealing this information to the other side without consent breaches that fiduciary duty of confidentiality.
Why the other options are wrong
- A. Listing agents are not entitled to a buyer's confidential price ceiling.
- C. Skill and care concerns competence, not disclosure of confidential negotiating information.
- D. Duty to non-clients concerns honesty toward the seller, not confidentiality violations toward the buyer.
Confidentiality Duty (Single Agency)
A single agent must keep the client's confidential information, such as maximum offer price or motivation, secret from the opposing party absent client consent.
- Applies fully in single agency (non-dual) representation.
- Breach occurs even without financial harm to the client.
- Client consent can waive confidentiality for specific information.
Memory trick: 'What's said to your agent stays with your agent.'