Sarah, a licensed real estate associate in Alberta, represents the buyer, David, in his purchase of a single-family home in Cochrane. During negotiations, Sarah learns that David is willing to pay significantly more than his initial offer due to his urgent need to relocate for a new job. Sarah also knows the seller, Emily, is in financial distress and eager to sell quickly. What is Sarah's fiduciary duty to David regarding this information?

Question: Sarah, a licensed real estate associate in Alberta, represents the buyer, David, in his purchase of a single-family home in Cochrane. During negotiations, Sarah learns that David is willing to pay significantly more than his initial offer due to his urgent need to relocate for a new job. Sarah also knows the seller, Emily, is in financial distress and eager to sell quickly. What is Sarah's fiduciary duty to David regarding this information?

Answer options:

• Sarah must disclose David's willingness to pay more to Emily's agent to facilitate a quicker sale. ✅ Sarah must prioritize David's best interests and not disclose his confidential financial position to Emily or Emily's agent.
• Sarah must advise David to increase his offer to ensure he secures the property, especially since Emily is in distress.
• Sarah must remain neutral and not offer any advice to David that could disadvantage Emily.

Correct answer: Sarah must prioritize David's best interests and not disclose his confidential financial position to Emily or Emily's agent.

Explanation: As David's agent, Sarah owes fiduciary duties including confidentiality and loyalty. She must act solely in David's best interests and not disclose confidential information, such as his willingness to pay more, to the seller or anyone else without David's express consent. This is a core principle of common law agency and RECA Rules.