Which statement about confidentiality is true in agency relationships?

• A. A licensee may disclose confidential information about a client to the other party if it benefits them
• B. The licensee may disclose the price or terms the seller will accept without permission of the buyer
• C. A licensee must not disclose confidential information about either client without permission
• D. The licensee should disclose all confidential information to both parties

Answer: (C)

Confidentiality is a fundamental duty in agency relationships. A licensee who represents a buyer or a seller must protect information their client shares and may not reveal it to the other party without the client’s permission. This protects trust and allows clients to be open about motivations, terms, and other sensitive details without fear of exposure. The licensee should disclose information only when the client agrees or when disclosure is necessary to carry out the agency duties or required by law. Therefore, the true statement is that a licensee must not disclose confidential information about either client without permission. Disclosing confidential information to the other party or revealing all such information would breach this duty, even if it might seem to help close a deal.