Oregon 30-Hour Real Estate Law Practice Test

What does the duty of confidentiality prevent an agent from doing?

1. Sharing client information without consent

2. Providing necessary disclosures to other parties

3. Communicating openly with clients about their needs

4. Discussing competing offers

The correct answer is: Sharing client information without consent

The duty of confidentiality is a fundamental obligation that an agent has towards their client, focused on protecting sensitive information that the client has shared during the course of the agent-client relationship. This duty prevents the agent from disclosing any confidential information regarding the client without their express consent, even after the professional relationship has ended. This principle is essential in fostering trust and maintaining the integrity of the client-agent relationship. While it is also crucial for agents to provide necessary disclosures to other parties based on legal requirements or ethical duties, these disclosures do not violate the duty of confidentiality if they are made appropriately and with the client’s knowledge. Communicating openly with clients about their needs is essential for effective representation, and discussing competing offers can be an important part of negotiation strategies usually conducted with appropriate disclosures and consent. However, any sharing of specific client information without consent directly contradicts the obligations of confidentiality, making that option the clearest example of what the duty prevents.