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I represent buyers who terminated a purchase agreement after discovering black mold in the house. I now have another interested buyer who would like to make an offer on the same home. The listing agent said that I cannot tell my buyer about the prior buyers’ discovery of mold because I obtained that information during a prior agency relationship. Is this true?

No. As a buyer’s agent you have a fiduciary duty to notify your current client of any issues that you know of about the property. While most buyers’ agency agreements expressly provide that the agent will not disclose confidential information learned through another agency relationship, the discovery of black mold is not “confidential” as to the first buyer. Information known to both a seller and a potential buyer is not “confidential” as to either.

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