Oregon 30-Hour Real Estate Law Practice Test

Under what circumstance can an agent disclose information obtained from a client?

1. When the client requests the information be shared

2. When it is necessary for marketing the property

3. When legally required or permitted

4. When it benefits the agent's commission

The correct answer is: When legally required or permitted

An agent can disclose information obtained from a client when it is legally required or permitted because this aligns with both legal obligations and ethical standards in real estate practice. In many situations, agents are bound by confidentiality agreements that require them to keep certain client information private. However, there are specific legal exceptions that allow for disclosure, such as when a court orders it or when the agent is required to provide information under state or federal laws. This principle ensures that agents adhere to the fiduciary duties they owe their clients, which includes maintaining confidentiality. The legal requirements can pertain to various scenarios, such as disclosures that protect the public interest or compliance with agency regulations. Understanding these boundaries is crucial for agents in maintaining their professional integrity and protecting their clients' rights. While a client may request information to be shared, agents must still consider their obligations regarding confidentiality. Marketing the property usually requires information that does not infringe on the confidentiality of the client, and disclosing information solely to benefit the agent's commission would breach the fiduciary duty owed to the client. Thus, the legal context provides a clear framework under which agents may share information without violating their responsibilities.