New Jersey Real Estate Exam Practice Question
In a jurisdiction where the common law of agency governs real estate activities, a broker has a single agency relationship with the seller only. The seller needs to be out of the home quickly due to job relocation. The broker CANNOT tell the buyer that information because of which fiduciary duty?
Correct Answer: B
Rationale: In a single agency relationship, the broker owes the seller a fiduciary duty of confidentiality, which prohibits sharing sensitive information, such as the seller's urgency to relocate, with potential buyers. This duty protects the seller's interests and maintains trust in the broker-client relationship.
Option A, accounting, pertains to the broker's obligation to manage funds and property responsibly, not information sharing. Option C, disclosure, involves revealing material facts about the property itself, not the seller's personal circumstances. Option D, obedience, requires the broker to follow the seller's lawful instructions, but does not justify breaching confidentiality.
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