What is Considered Confidential Information?

Question:

Is all information provided by a client to his or her agent considered “confidential”?

Recommendation:

The quick answer is: “No,” but a

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little explanation below might help an agent distinguish between what is considered “confidential” and what is considered “not confidential.”

According to La. R.S. 9:3895, when the relationship between an agent and the client ceases, the agent has a duty to keep confidential all “confidential” information received during the course of the brokerage agreement.

“Confidential information” is defined in La. R.S. 9:3891(6)(a) as information obtained by a real estate agent from a client during the term of a brokerage agreement that was made confidential by the written request or written instruction of the client or is information the disclosure of which could materially harm the position of the client.

Now that we know how to define “confidential” information, what information would not be considered “confidential”?

According to Louisiana Revised Statutes 9:3891(6), the following would not be considered “confidential” information:

1. The client permits the disclosure by word or conduct; or

2. The disclosure is required by law or would reveal a serious defect; or

3. The information becomes public from a source other than the agent

Additionally, Louisiana Revised Statutes 9:3891(6) also provides that:

1. Material information about the physical condition of the property is not considered confidential; and

2. Confidential information can be disclosed by a designated agent to his or her broker for the purpose of seeking advice or assistance for the benefit of the client.

For any questions regarding this email, please contact me at rye@tutentitle.com.