A real estate associate, Jessica, is representing a buyer interested in a property in Lethbridge. During negotiations, Jessica learns from the buyer that they have inherited a substantial sum of money, making them capable of increasing their offer significantly if needed. The seller's agent, in confidence, shares with Jessica that the seller is in a desperate financial situation and needs a quick sale. What ethical dilemma does this present for Jessica, and what should she do?

Question: A real estate associate, Jessica, is representing a buyer interested in a property in Lethbridge. During negotiations, Jessica learns from the buyer that they have inherited a substantial sum of money, making them capable of increasing their offer significantly if needed. The seller's agent, in confidence, shares with Jessica that the seller is in a desperate financial situation and needs a quick sale. What ethical dilemma does this present for Jessica, and what should she do?

Answer options: ✅ Jessica must keep her client's financial information confidential and use the knowledge of the seller's desperation to negotiate a lower price for her buyer.

• Jessica should disclose the buyer's enhanced financial capacity to the seller's agent to facilitate a fair negotiation.
• Jessica should advise her client to increase their offer, given the seller's desperate situation, to ensure the deal closes quickly.
• Jessica should inform her client about the seller's financial desperation but keep the client's inheritance information confidential.

Correct answer: Jessica must keep her client's financial information confidential and use the knowledge of the seller's desperation to negotiate a lower price for her buyer.

Explanation: Jessica's primary duty is to her client, the buyer. Under confidentiality principles, she must not disclose her client's financial capacity. She should use all legally and ethically available information, including the seller's desperation (provided it was not obtained by breaching confidentiality), to her client's advantage in negotiations within her duty to her client.