A Florida real estate broker is acting as a single agent for a seller. During negotiations, the buyer's agent asks if there have been any previous offers on the property. The seller has explicitly instructed the single agent not to disclose any prior offers. What is the single agent's obligation?
- ADisclose only the highest prior offer to encourage a stronger new offer.
- BRefuse to answer, stating that the information is confidential and protected by attorney-client privilege.
- CInform the buyer's agent that they are not permitted to disclose that information.
- DDisclose the prior offers, as this information is material to the buyer's decision.
Show answer & explanationAnswer & explanation
Correct answer: C. Inform the buyer's agent that they are not permitted to disclose that information.
As a single agent, the broker owes fiduciary duties to the seller, including loyalty and confidentiality. Unless legally required or authorized by the principal, confidential information, such as previous offers, must be protected. The broker should state they are not permitted to disclose this information, upholding their duty to the seller.
Why the other options are wrong
- A. This is incorrect; selectively disclosing information against the principal's instructions is a breach of fiduciary duty.
- B. This is incorrect; while confidentiality is key, attorney-client privilege is not applicable here as the broker is not an attorney.
- D. This is incorrect; disclosing prior offers against the seller's wishes violates the single agent's duty of confidentiality and loyalty.
Single Agent Confidentiality
A Florida single agent has a fiduciary duty to keep confidential any information learned from or about the principal that could harm the principal's negotiating position, unless disclosure is authorized by the principal or required by law.
- Duty of loyalty to the principal.
- Protect confidential information.
- Only disclose with principal's consent or legal mandate.
Memory trick: Single agents are loyal protectors of secrets, always looking out for their client's best interest.