Agency
A Washington real estate agent is working with a buyer who has confidential information about a major employer relocating to the area, which will likely increase property values significantly. The agent must:
AShare this information with all seller clients to help them hold out for higher prices
BAdvise the buyer to act quickly without disclosing the inside information to sellers, as it is the buyer's advantage
CConsider whether using this non-public information in real estate transactions raises securities laws or ethical concerns✓ Correct
DIgnore the information because it is unverified
Explanation
Using material non-public information to gain advantage in real estate transactions raises significant ethical concerns and may also implicate securities laws if the employer is publicly traded. Real estate professionals should be cautious about acting on or advising clients based on potentially confidential inside information.
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