Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Did George, the listing agent, violate his duty of fidelity when discussing the seller's situation with a personal friend?

1. Yes

2. No

3. Only if the friend is also a realtor

4. Only if the seller requested confidentiality

The correct answer is: Yes

The duty of fidelity is a crucial aspect of an agent's responsibilities toward their client, which includes maintaining the confidentiality of all information related to the client’s affairs and the transaction. When George, the listing agent, discusses the seller's situation with a personal friend, he jeopardizes this duty by potentially divulging sensitive information that the seller expects to remain private. In real estate, maintaining the confidentiality of client information is not only an ethical obligation but also a legal requirement under agency law. This means that any unauthorized disclosure of personal or financial information could be seen as a breach of trust, thereby violating the duty of fidelity. Regardless of the conditions surrounding the friendship or whether the friend is a realtor or if the seller requested confidentiality, the act of sharing details about the seller’s situation with someone outside the transaction shows a disregard for the confidentiality that should be upheld. Thus, the conclusion that George violated his duty of fidelity is correct.