AgencyIntermediateCalifornia Exam

A listing agent tells potential buyers that the seller 'is highly motivated and needs to sell quickly.' This statement is:

AGood salesmanship and appropriate
BA violation of fiduciary duty to the sellerCorrect
CRequired under California disclosure law
DPermissible only if the seller is in foreclosure

Why A violation of fiduciary duty to the seller Is Correct

Answer B: A violation of fiduciary duty to the seller

Disclosing the seller's motivation without authorization is a breach of the agent's fiduciary duty of confidentiality to the seller. This information could be used by buyers to offer less than the asking price.

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.

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