Agency
A Minnesota buyer's agent has been working with a buyer for several months. The buyer tells the agent in confidence that they would pay up to $375,000 for a home listed at $340,000. The agent must:
AImmediately tell the listing agent to maximize value for the seller
BKeep this information confidential per their fiduciary duty to the buyer✓ Correct
CDisclose it in writing to maintain transparency in the transaction
DUse it to advise the buyer to offer the full $375,000
Explanation
A buyer's maximum willingness to pay is highly confidential information. A buyer's agent must protect this information and cannot disclose it to the seller or the listing agent.
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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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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