A licensee is operating under a transaction brokerage agreement for a specific property transaction. The seller confides in the licensee that they are experiencing financial difficulties and need to sell quickly, potentially accepting a lower offer. The buyer, also in a transaction brokerage relationship with the same licensee, mentions they would be willing to pay more if the property was perfect. What information, if any, can the licensee disclose to the other party?

Question: A licensee is operating under a transaction brokerage agreement for a specific property transaction. The seller confides in the licensee that they are experiencing financial difficulties and need to sell quickly, potentially accepting a lower offer. The buyer, also in a transaction brokerage relationship with the same licensee, mentions they would be willing to pay more if the property was perfect. What information, if any, can the licensee disclose to the other party?

Answer options: ✅ The licensee can disclose neither the seller's financial difficulties nor the buyer's willingness to pay more.

• The licensee can disclose the seller's financial difficulties but not the buyer's willingness to pay more.
• The licensee can disclose the buyer's willingness to pay more but not the seller's financial difficulties.
• The licensee can disclose both pieces of information as they are acting as a conduit, not an agent.

Correct answer: The licensee can disclose neither the seller's financial difficulties nor the buyer's willingness to pay more.

Explanation: In a transaction brokerage, licensees are prohibited from disclosing confidential information about either party, such as motivation, unless expressly authorized by that party, as per RECA's Real Estate Act Rules regarding transaction brokerage limitations.