AgencyIntermediateCalifornia Exam

A seller's agent learns that the seller is in financial distress and must sell quickly. What must the agent do with this information?

ADisclose it to the buyer immediately, per standard fiduciary practice in the industry
BKeep it confidential and not disclose it without the seller's permissionCorrect
CReport it to the DRE, under standard California agency practice
DInclude it in the MLS listing, as commonly applied in brokerage relationships

Why Keep it confidential and not disclose it without the seller's permission Is Correct

Answer B: Keep it confidential and not disclose it without the seller's permission

A seller's agent owes the seller a duty of confidentiality. Information about the seller's motivation, financial condition, or urgency to sell is confidential and must not be disclosed to buyers without the seller's consent.

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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