A buyer's associate discovers that the seller of a property has received a verbal offer much higher than their client's pending written offer. The buyer's associate has a fiduciary duty to their client. What action should the buyer's associate take?

Question: A buyer's associate discovers that the seller of a property has received a verbal offer much higher than their client's pending written offer. The buyer's associate has a fiduciary duty to their client. What action should the buyer's associate take?

Answer options:

• Do not disclose the information because it was received verbally and could be unverified. ✅ Advise the client immediately about the higher verbal offer without disclosing specific terms.
• Strategically withhold the information to prevent the buyer from overpaying.
• Disclose the information to the buyer only if they specifically ask about other offers.

Correct answer: Advise the client immediately about the higher verbal offer without disclosing specific terms.

Explanation: RECA Rules, Section 34(g) and the general principles of agency dictate that an industry member must disclose all material information that could affect the client's decision-making. Information about other offers is material to a buyer's strategy, even if verbal.