Agency
A Louisiana real estate agent discovers that the buyer they represent has a prior bankruptcy. Regarding this information and the seller:
AThe agent must immediately disclose this to the seller
BThe buyer's financial details (unless directly related to their ability to close) are confidential and should not be disclosed to the seller without the buyer's consent✓ Correct
CThe agent must withdraw from representing the buyer
DThe agent must ask the LREC how to proceed
Explanation
A buyer's financial history (bankruptcy, credit issues) is confidential client information. A buyer's agent should not disclose this to the seller. However, if the bankruptcy directly affects the buyer's ability to close (qualification for financing), it may be relevant to disclose to avoid a failed transaction.
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