PSI Virginia Real Estate Practice Exam

What is one obligation of an agent regarding client confidentiality?

1. Share financial information with potential buyers

2. Maintain confidentiality unless given written consent to disclose

3. Provide the seller's personal history to all buyers

4. Only maintain confidentiality for the duration of the sale

The correct answer is: Maintain confidentiality unless given written consent to disclose

An agent's obligation regarding client confidentiality is to maintain confidentiality unless given written consent to disclose information. This principle is rooted in the fiduciary duty an agent has toward their client, which includes loyalty and confidentiality. Maintaining client confidentiality protects sensitive information, builds trust, and upholds the professional integrity of the agent-client relationship. In real estate transactions, clients often share personal, financial, and strategic information that should not be disclosed to third parties without explicit permission. For instance, if a client discloses their financial situation or motivations for selling, the agent must keep this information private to protect the client's interests and maintain a competitive advantage during negotiations. The other choices address improper actions regarding confidentiality, indicating a misunderstanding of the agent’s responsibilities. Sharing financial information without consent undermines the trust and obligation the agent has. Providing the seller’s personal history to all buyers could lead to privacy violations and potential legal ramifications. Finally, limiting confidentiality to just the duration of the sale is insufficient, as agents have an ongoing duty to protect their clients' information even after the transaction is complete.