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Which of the following may a broker disclose to a prospective purchaser WITHOUT permission? Select one:

a. Why the seller must sell now
b. What the owner actually will accept
c. Why the property is not desirable
d. What the owner originally paid

User Glaucon
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1 Answer

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Final answer:

A broker can disclose what the owner originally paid for the property without permission, as it is public record. Imperfect information affects price negotiations because it can create an imbalance in knowledge between buyer and seller.

Step-by-step explanation:

A broker can disclose certain information to a prospective purchaser without the seller's permission. Among the options provided, the one that a broker can disclose is what the owner originally paid for the property. This information is generally considered public record and can be found through property tax documents or other public sources. Disclosing the seller's urgency to sell, their bottom-line acceptance price, or reasons why the property is not desirable may breach confidentiality and can only be shared with the seller's consent.

Imperfect information in a market can make it difficult for a buyer and seller to agree on a price because both parties may not have the same knowledge about the product or service. Sellers might be aware of issues that they choose not to disclose, while buyers may not have enough information to make an informed decision. The imperfect information can lead to a discrepancy in the perceived value of the item being sold, such as a used car or a property, thereby impacting the negotiation process and the final selling price.

User Franza
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