AgencyIntermediateAlabama Exam

Which of the following actions would constitute a breach of fiduciary duty by a buyer's agent?

AShowing the buyer properties above their stated budget, as is typically expected in this situation
BDisclosing the buyer's maximum purchase price to the listing agent without the buyer's permissionCorrect
CAdvising the buyer to get a home inspection
DPresenting all offers from the buyer promptly

Why Disclosing the buyer's maximum purchase price to the listing agent without the buyer's permission Is Correct

Answer B: Disclosing the buyer's maximum purchase price to the listing agent without the buyer's permission

Disclosing the buyer's confidential negotiating information (such as their maximum price) to the seller or listing agent without permission is a serious breach of the agent's fiduciary duties of loyalty and confidentiality.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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