Agency
Iowa's listing agent who sells a property more quickly than expected by disclosing the buyer's willingness to pay more than the offer price has:
AProvided excellent service to the seller
BBreached their fiduciary duty of confidentiality to the buyer✓ Correct
CFulfilled the duty of disclosure to all parties
DComplied with Iowa's fair dealing standard
Explanation
A buyer's agent who discloses the buyer's maximum willingness to pay to the seller has breached the fiduciary duty of confidentiality owed to their buyer-client. This is a serious violation of Iowa agency law regardless of the perceived benefit to the transaction.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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