Can a broker disclose to a friend that the seller is going through a divorce?

The correct answer highlights an essential principle in real estate ethics and law regarding confidentiality. Brokers have a fiduciary duty to their clients, which includes safeguarding sensitive information. Disclosing that a seller is going through a divorce could potentially harm the seller's interests by revealing information that might affect negotiations or the perception of the seller's situation. This type of personal information is not just private; it could impact how buyers perceive the property and the seller's urgency in negotiations.

A broker must maintain confidentiality unless specific circumstances allow for disclosure, such as obtaining the seller's consent. In the case presented, the broker does not have the seller's permission to share this personal information with a friend, regardless of whether the friend is a potential buyer or not, as sharing such details without consent violates confidentiality obligations. This principle ensures that clients can trust their brokers to protect their personal information and interests without fear of it being disclosed to others.