A designated agent for the seller receives a firm offer from a buyer for $520,000 on a property listed at $530,000. Before presenting the offer, the agent learns through a public records search that the buyer recently sold their previous home for $700,000, suggesting they have substantial financial capacity. What is the agent's obligation regarding this information?

Question: A designated agent for the seller receives a firm offer from a buyer for $520,000 on a property listed at $530,000. Before presenting the offer, the agent learns through a public records search that the buyer recently sold their previous home for $700,000, suggesting they have substantial financial capacity. What is the agent's obligation regarding this information?

Answer options: ✅ The agent must disclose this information to the seller to help with negotiation strategy

• The agent must not disclose this information as it is personal to the buyer and not obtained through their listing duties
• The agent should only disclose it if asked directly by the seller
• The agent should verify the buyer's financial capacity with the buyer's lender before disclosure

Correct answer: The agent must disclose this information to the seller to help with negotiation strategy

Explanation: Information obtained through public records that is material to the transaction falls under the agent's duty to fully disclose to their client, the seller. The buyer's financial capacity can directly influence the seller's negotiation strategy, fulfilling the agent's fiduciary duty of loyalty and full disclosure to their principal.