Wisconsin Real Estate Sales Practice Exam

Which scenario describes a breach of the duty of confidentiality?

1. Sharing personal information without consent

2. Failing to provide information requested by a buyer

3. Offering advice without authorization

4. Withholding necessary documents

The correct answer is: Sharing personal information without consent

The scenario that illustrates a breach of the duty of confidentiality is sharing personal information without consent. Confidentiality is a fundamental ethical obligation in real estate transactions. When a real estate professional acquires personal information about a client—such as financial details, motivations for selling, or personal circumstances—they are legally and morally obligated to keep this information private. Sharing such information without the client's explicit consent violates this duty of confidentiality and can lead to a loss of trust, as well as potential legal ramifications. In contrast, failing to provide information requested by a buyer does not inherently breach confidentiality; rather, it may reflect a lack of responsiveness or communication. Offering advice without authorization might suggest overstepping one’s role, but it doesn't necessarily involve the misuse of confidential information. Withholding necessary documents might violate other duties, such as compliance and disclosure obligations, rather than confidentiality directly. Thus, the critical factor in identifying a breach of confidentiality lies in the unauthorized sharing of private client information.