A buyer client, David, instructs his designated agent, Emily from Lighthouse Properties, to include a subject clause for financing in his offer for 123 Oceanview Drive, West Vancouver. David later tells Emily that he has secured financing and wants to waive the subject, but also mentions a recent temporary layoff from his job. What is Emily's obligation regarding the layoff information?

Question: A buyer client, David, instructs his designated agent, Emily from Lighthouse Properties, to include a subject clause for financing in his offer for 123 Oceanview Drive, West Vancouver. David later tells Emily that he has secured financing and wants to waive the subject, but also mentions a recent temporary layoff from his job. What is Emily's obligation regarding the layoff information?

Answer options: ✅ Emily must keep David's layoff confidential as it is client information, even though it may affect his financing.

• Emily must disclose the layoff to the seller's agent immediately as it impacts David's ability to complete the purchase.
• Emily should advise David to get legal counsel regarding the implications of waiving the subject while unemployed.
• Emily must ensure David has alternative financing in place before waiving the subject, and if not, she should refuse to waive it.

Correct answer: Emily must keep David's layoff confidential as it is client information, even though it may affect his financing.

Explanation: Emily owes a duty of confidentiality to her client, David, under designated agency. Information about his employment status is confidential and does not fall under the limited exceptions for disclosure, even if it could impact the transaction.