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Confidentiality

Confidentiality

 An agent is obligated to safeguard his/her principal’s lawful confidences and

secrets. Therefore, a real estate broker must keep confidential any information that may weaken

a principal’s bargaining position. The duty of confidentiality precludes a broker who represents a

seller from disclosing to a buyer that the seller can, or must, sell a property below the listed price.

Conversely, a broker who represents a buyer is prohibited from disclosing to a seller that the buyer

can, or will, pay more than what has been offered for a property.

The duty of confidentiality does not include an obligation by a broker who represents a seller to

withhold known material facts about the condition of the seller’s property from the buyer, or to

misrepresent the property’s condition. To do so constitutes misrepresentation and may impose

liability on both the broker and/or the seller.


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