National PSI Broker Practice Exam

Question: 1 / 400

What is the obligation of a listing agent when a buyer expresses interest in a property?

To automatically become a dual agent

To inform the buyer that they cannot share confidential information

When a buyer expresses interest in a property, the obligation of a listing agent is to inform the buyer that they cannot share confidential information that may have been disclosed by the seller. This is important because the listing agent has a fiduciary duty to the seller, which includes protecting the seller's confidential information. The agent must ensure that the buyer understands the limits of the relationship and that any sensitive information, such as the seller's motivations or pricing strategies, cannot be disclosed without the seller's consent.

This understanding is crucial in real estate transactions, as it helps maintain trust between the agent and the seller, while also ensuring that the buyer is aware of the boundaries of the information that can be shared. By clarifying this point, the agent adheres to ethical standards and legal responsibilities inherent in real estate practice.

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To assure the buyer their information is confidential

To not address any disclosure obligations at this point

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