Indiana Real Estate Broker Practice Exam

An agent can legally disclose a seller's motivation to a buyer if the agent has obtained consent from the seller. This situation emphasizes the importance of client confidentiality and the fiduciary duty that real estate agents have towards their clients. Obtaining the seller's explicit consent ensures that the agent is acting within legal and ethical boundaries while sharing information that is sensitive and could impact the transaction.

In real estate, a seller’s motivation can significantly influence negotiations, so it is crucial for the agent to have permission to share that information. This practice protects the interests of the seller and upholds the trust placed in the agent by their client.

In scenarios where the buyer requests such information or if it's already known within the community, the agent must still consider their obligations to their client. Common knowledge does not always justify disclosure without consent, as it can still compromise the seller’s negotiating position. Similarly, a buyer's request does not automatically grant permission to disclose unless the seller has agreed to it. Thus, the requirement for consent is essential in maintaining the integrity of the agency relationship.