A broker was a transaction broker in the sale and purchase of an office building. The broker felt an obligation to tell the buyer about the seller's need to sell quickly. As a balance, the broker helped the seller get a better price from the buyer because of some comments the buyer made during the property inspection. What is correct?

A broker was a transaction broker in the sale and purchase of an office building. The broker felt an obligation to tell the buyer about the seller's need to sell quickly. As a balance, the broker helped the seller get a better price from the buyer because of some comments the buyer made during the property inspection. What is correct?

• A. Disclosure of such information violates Chapter 475.
• B. This is allowed as a best practice to facilitate a sale.
• C. The broker must resign.
• D. The buyer may file a complaint with the state real estate commission.

Answer: (A)

In a transaction broker relationship, the licensee must deal honestly and fairly while protecting the confidential information of both parties. Revealing the seller’s motive to sell quickly is a personal position that should be kept private because it can unfairly influence the other side’s negotiating stance. Disclosing this kind of motivation would undermine the seller’s negotiating position and is not allowed under Chapter 475. That statute governs brokerage conduct and includes preserving confidential information that could disadvantage a party. So telling the buyer that the seller needs to sell fast is a breach of those duties, making it the best reason for choosing that answer. The other choices aren’t correct for this reason. Resigning isn’t mandated by a single disclosure, and while a buyer could file a complaint if they feel harmed, the central issue is the improper disclosure of confidential information.

In a transaction broker relationship, the licensee must deal honestly and fairly while protecting the confidential information of both parties. Revealing the seller’s motive to sell quickly is a personal position that should be kept private because it can unfairly influence the other side’s negotiating stance.

Disclosing this kind of motivation would undermine the seller’s negotiating position and is not allowed under Chapter 475. That statute governs brokerage conduct and includes preserving confidential information that could disadvantage a party. So telling the buyer that the seller needs to sell fast is a breach of those duties, making it the best reason for choosing that answer.

The other choices aren’t correct for this reason. Resigning isn’t mandated by a single disclosure, and while a buyer could file a complaint if they feel harmed, the central issue is the improper disclosure of confidential information.