Agency
A Rhode Island seller asks their listing agent whether the buyer is willing to increase their offer. The agent knows the buyer's maximum. What should the listing agent do?
ATell the seller the buyer's maximum so the seller can counter higher
BAdvise the seller based on market information but not disclose the buyer's confidential maximum✓ Correct
CRefuse to advise the seller at all
DAsk the buyer's agent for permission first
Explanation
A listing agent owes confidentiality to their seller-client but must not violate the buyer's confidential information they may have obtained. The agent should advise the seller based on market information and the seller's goals, without disclosing the buyer's private maximum.
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Key Terms to Know
Buyer's Agent
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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.
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