Agency
A Kentucky listing agent learns that the seller is going through a difficult divorce and needs to sell quickly for financial reasons. Disclosing this to a buyer would:
ABe acceptable since the buyer will find out at closing anyway
BViolate the agent's fiduciary duty of confidentiality to the seller✓ Correct
CBe required since financial distress is a material fact
DBe permissible if the buyer is the agent's family member
Explanation
The seller's personal financial situation and motivation for selling are confidential information. Disclosing this to a buyer would give the buyer negotiating leverage at the seller's expense and violate the listing agent's fiduciary duty of confidentiality.
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