Under what conditions can a real estate professional disclose confidential information?

The correct answer is based on the ethical and legal obligations that real estate professionals must adhere to when handling client information. A real estate professional is allowed to disclose confidential information only when authorized by the client or required by law.

This principle is rooted in the fiduciary duty that real estate professionals have towards their clients, which includes maintaining the confidentiality of information shared during the course of the professional relationship. When a client authorizes the release of information, the agent can proceed with the disclosure, ensuring that the client’s interests are still prioritized. Similarly, there may be legal requirements that necessitate disclosure, such as when law enforcement requires information for investigation purposes or when it is mandated by statutory obligations.

Options that suggest disclosure for financial benefit, without client authorization, or simply upon request from another party do not align with the ethical standards laid out in the real estate profession. Such actions could compromise the trust and integrity that are essential to the client-agency relationship, potentially leading to legal ramifications for the real estate professional. By adhering to the correct option, professionals can ensure they uphold the legal and moral standards of their practice.