Oregon 30-Hour Real Estate Law Practice Test

In the context of fiduciary duties, which situation exemplifies a breach of confidentiality?

1. Jeanette informs the buyer's agent about her client's illness.

2. Jessie inspects the property before the professional inspection.

3. Micah chooses to ignore a demanding client's instructions.

4. Donna provides all paperwork to her client after closing.

The correct answer is: Jeanette informs the buyer's agent about her client's illness.

In the context of fiduciary duties within real estate, confidentiality is a fundamental principle that mandates a broker or agent to keep sensitive client information private. This obligation typically includes personal information, financial matters, and any details that could impact the client's position in negotiations or transactions. When Jeanette informs the buyer's agent about her client's illness, she is disclosing private information that is not necessary for the transaction and could potentially harm her client's interests. This act violates the confidentiality aspect of the fiduciary duty, as the illness is a personal matter that should remain between Jeanette and her client. This situation starkly demonstrates a breach of confidentiality because it involves sharing sensitive information with a third party—essentially undermining the trust that is essential to a fiduciary relationship. Maintaining this confidentiality is crucial for protecting the client's interests and ensuring that they have a fair opportunity in their dealings.