A real estate associate, Sarah, is representing a buyer. While showing a property, the buyer expresses a strong interest. The seller's associate asks Sarah if her buyer is pre-approved for a mortgage. What is Sarah's appropriate action regarding this disclosure?

Question: A real estate associate, Sarah, is representing a buyer. While showing a property, the buyer expresses a strong interest. The seller's associate asks Sarah if her buyer is pre-approved for a mortgage. What is Sarah's appropriate action regarding this disclosure?

Answer options: ✅ Sarah must not disclose the buyer's financial information without the buyer's express written consent.

• Sarah can disclose that the buyer is pre-approved if it strengthens their offer.
• Sarah should advise the seller's agent that she cannot answer the question, but the buyer is serious.
• Sarah is obligated to disclose all material facts to the seller's agent, including financial pre-approval status.

Correct answer: Sarah must not disclose the buyer's financial information without the buyer's express written consent.

Explanation: RECA Rules, Section 40(c) states that an industry member must not disclose a client's confidential information unless required by law or authorized by the client in writing. Financial details like pre-approval status are confidential.