Agency
In New Mexico, when a seller's agent learns that the seller is experiencing financial distress and may accept below-market value, the agent must:
ADisclose the financial distress to potential buyers to generate more offers
BKeep the seller's financial situation confidential while fulfilling other disclosure duties✓ Correct
CTell the qualifying broker immediately so the broker can buy the property
DWithdraw from the listing
Explanation
The duty of confidentiality requires the seller's agent to protect the seller's financial situation and negotiating position. Disclosing this to buyers would breach the agent's fiduciary duty of confidentiality.
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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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