Part
4 of 7
Confidentiality - “An agent is obligated to safeguard his principal’s
confidence and secrets. A real estate broker, therefore, must keep confidential
any information that might weaken his principal’s bargaining position if it were
revealed. This duty of confidentiality precludes a broker representing a seller
from disclosing to a buyer that the seller can, or must, sell his property below
the listed price. Conversely, a broker representing a buyer is prohibited from
disclosing to a seller that the buyer can, or will, pay more for a property than
has been offered.”
Reasonable care and diligence - “An agent is obligated to use reasonable
care and diligence in pursuing the principal’s affairs. The standard of care expected
of a real estate broker representing a seller or buyer is that of a competent real estate
professional. By reason of his license, a real estate broker is deemed to have skill and
expertise in real estate matters superior to that of the average person. As an agent
representing others in their real estate dealings, a broker or salesperson is under a
duty to use his superior skill and knowledge while pursuing his principal’s affairs.
This duly includes an obligation to affirmatively discover facts relating to his principal’s
affairs that a reasonable and prudent real estate broker would be expected to investigate.”
Accounting - “An agent
is obligated to account for all money or property belonging to his principal that is entrusted
to him. This duty compels a real estate broker to safeguard any money, deeds, or other
documents entrusted to him that relate to his client’s transactions or affairs.”
(Continue To Part 5 of 7)