Your representing crystal in the purchase of a house. Crystal has a trust fund and can more than afford the house which she's made an offer. Which of these statements is true?

Question

Business

Francis Vega

26 September, 05:41

Your representing crystal in the purchase of a house. Crystal has a trust fund and can more than afford the house which she's made an offer. Which of these statements is true?

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Answers (1)

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Edwin Madden · Answer 1

Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller.

Explanation:

In this case, your client (Crystal) is very wealthy or at least has a lot of money to spend on a house. But you have a duty with her to not reveal that she is very wealthy and could pay a higher price for the property.

Many times wealthy buyers hire agents that do not disclose who their principal is or only partially disclose their identity because they fear that the selling party might want to increase the price of the property if they knew who was interested in it.

E. g. you have 1,000 acres of land and wish to sell it, and someone from Disney came in and told you they were looking for a new place to build a theme park. If you were willing to sell your land at let's say $2 million before, the moment you hear Disney the price goes up to $10 million at least.