In a real estate transaction where Nate represents Elena and Katherine represents Timothy, what duty does Nate owe Timothy?

In real estate transactions, agents owe specific duties to all parties involved, even if they are not directly representing them. Nate, representing Elena, owes Timothy a duty of disclosure. This duty focuses on the obligation to inform Timothy about any relevant information that could affect his decision as a buyer. This could include material facts about the property or the transaction that would be important for Timothy to make an informed choice.

The concept of duty of disclosure is vital in fostering transparency and trust in real estate transactions. It ensures that buyers have access to all necessary information that could impact their investment. While Nate’s primary loyalty is to Elena, he still must act fairly and honestly towards Timothy, including disclosing material facts.

The other choices do not align with Nate's responsibilities to Timothy. While Nate does have a duty of confidentiality regarding Elena's situation, that does not extend to Timothy, as confidentiality only pertains to the client-agent relationship. Nate's duty of loyalty is exclusively to his client, Elena, and does not imply any obligation to Timothy. Disclosure of material defects typically refers to the seller's responsibility, not the buyer's agent in this case, further affirming that Nate's obligation is centered around informing Timothy.