Question 21

The broker cannot tell the buyer about the seller's need to relocate due to the fiduciary duty of confidentiality.

In a single agency relationship, the broker has a duty to maintain the confidentiality of the seller's private information, which includes the urgency of the seller's relocation.

A) accounting

The duty of accounting requires the broker to keep accurate records of all money and property related to the transaction. While this duty is important, it does not pertain to the broker's obligation to protect the seller's confidential information regarding their personal circumstances.

B) confidentiality

Confidentiality is the correct fiduciary duty in this context. It obligates the broker to keep sensitive information about the seller, such as their need to relocate quickly, private and not disclose it to potential buyers. This duty ensures that the seller's personal situation is protected during the sales process.

C) disclosure

The duty of disclosure involves informing the principal about material facts related to the transaction. However, this duty does not permit the broker to disclose the seller's confidential information to the buyer. Therefore, it does not apply in this situation where the seller's urgency is confidential.

D) obedience

The duty of obedience requires the broker to follow the lawful instructions of the principal. While important, it does not address the confidentiality of the seller's personal circumstances. The broker must obey the seller's directive not to disclose personal information, but the core issue here is the protection of that information itself.

Conclusion

The fiduciary duty of confidentiality is crucial in this scenario, as it directly relates to the broker's responsibility to safeguard the seller's personal information, such as their need for a swift relocation. All other options fail to address the critical nature of maintaining confidentiality in an agency relationship, making option B the definitive correct answer.