Final answer:
In a disclosed dual agency relationship, agents must maintain confidentiality of sensitive information. They should not disclose one party's motivation, financial qualifications, or willingness to negotiate on price unless given permission to do so.
Step-by-step explanation:
In the context of a disclosed dual agency relationship, the agent represents both parties in a transaction. While full disclosure is a crucial aspect of this relationship, it is important to recognize that certain information must remain confidential. This is in order to protect the interests of both parties and to maintain the integrity of the transaction.
The information that an agent is typically prohibited from disclosing includes personal details not related to the transaction, such as the party's motivations for engaging in the transaction unless that party has given explicit permission to do so. This would include a seller's willingness to accept a lower price than what is listed or a buyer's willingness to pay a price higher than the offer made. Other types of confidential information could be related to the financial qualifications of the parties, like the maximum amount a buyer is qualified to borrow or the minimum amount a seller is willing to accept.
Agents in a dual agency role must carefully navigate the information they share to avoid breaching their fiduciary duty to either party and to comply with the principles of fairness and honesty required by law.