Which fiduciary duty requires the licensee to keep information confidential unless disclosure is authorized?

• A. Loyalty
• B. Obedience
• C. Confidentiality
• D. Disclosure of material facts

Answer: (C)

Confidentiality is the duty that keeps a client’s information private unless the client agrees to share it or the law requires disclosure. In practice, this means a licensee won’t reveal details like a client’s motivation, financial situation, or negotiation strategies to others who aren’t involved in representing the client. This protection helps maintain trust and preserves the client’s negotiating position.

Loyalty, obedience, and disclosure of material facts address other obligations. Loyalty is about acting in the client’s best interests; obedience is following lawful instructions from the client; and disclosure of material facts concerns informing the client (and sometimes others) about known issues that could affect a transaction. These duties are related, but confidentiality specifically targets safeguarding private information unless authorized.