Florida Real Estate Sales Associate Examination Content OutlineReal Estate Contracts and AgencyMedium
A buyer's agent is representing a client in the purchase of a property. The agent receives confidential information from their client about their absolute maximum budget for the purchase. The seller's agent, during casual conversation, attempts to elicit this information. What is the buyer's agent's ethical and legal obligation regarding this information?
- ADisclose the information only if the seller's agent promises to keep it confidential.
- BSuggest the client reveal the information themselves if they choose.
- CDisclose the maximum budget if it helps expedite the negotiation process.
- DMaintain strict confidentiality and not disclose the information.
Show answer & explanationAnswer & explanation
Correct answer: D. Maintain strict confidentiality and not disclose the information.
A buyer's agent has a fiduciary duty of confidentiality to their client. This means they must not disclose any confidential information, such as the client's maximum budget, to the opposing party or anyone else, without the client's express permission.
Why the other options are wrong
- A. Promising confidentiality from another agent does not negate the first agent's duty to their own client.
- B. While the client *can* choose to reveal it, the agent's obligation is to protect it, not to prompt the client to disclose it.
- C. Expediting negotiation does not override the duty of confidentiality to the client.
Agent's Duty of Confidentiality
A fiduciary duty requiring an agent to protect their principal's confidential information, including personal financial details, motivations, or negotiating positions, from disclosure to third parties.
- Information remains confidential even after the agency relationship ends
- Essential for client trust
- Only waived by client's express permission or legal requirement
Memory trick: OLD CAR: Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care.