Which statement reflects a fiduciary obligation of a licensee acting as a dual agent?

• A. Provide information about comparable properties that have sold so both clients may make educated decisions on what price to accept or offer
• B. Disclose the price or terms the seller will accept without permission of the buyer
• C. Explain closing costs and procedures to only the buyer
• D. Guarantee financing terms to the buyer

Answer: (A)

In dual agency, the licensee has fiduciary duties to both the buyer and the seller, including providing information that helps both sides make educated decisions. Sharing information about comparable properties that have sold gives both clients an objective, market-based basis to evaluate price. It supports informed negotiation by showing recent sale prices, time on market, and other factors that affect value, allowing each party to understand where the price range should reasonably lie. This aligns with the duty of reasonable care and diligent information disclosure to both clients, which is essential when representing both sides in the same transaction.

Disclosing the seller’s price or terms without the buyer’s permission would violate confidentiality and loyalty to the other client, and explaining closing costs or procedures to only one party would undermine impartiality. Guaranteeing financing terms to the buyer oversteps the licensee’s role, since loan terms come from lenders, not the agent. Thus, sharing sold-comparison information to inform both sides is the best reflection of the fiduciary obligation in dual agency.