Terms and Definitions
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Confidentiality

An agent is obligated to safeguard his principal’s confidence and secrets. A real estate broker, therefore, must
keep confidential any information that might weaken his principal’s bargaining position if it were revealed.
This duty of confidentiality precludes a broker representing a seller from disclosing to a buyer that the seller
can, or must, sell his property below the listed price. Conversely, a broker representing a buyer is prohibited
from disclosing to a seller that the buyer can, or will, pay more for a property than has been offered.
CAVEAT: This duty of confidentiality plainly does not include any obligation on a broker representing a
seller to withhold from a buyer known material facts concerning the condition of the seller’s property or to
misrepresent the condition of the property. To do so would constitute misrepresentation and would impose
liability on both the broker and the seller.

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