What duties does Margaret owe to Bill, her prospective buyer, since they have not signed an agency agreement?

Margaret owes duties of honesty and fairness to Bill, her prospective buyer, even in the absence of a signed agency agreement. In a real estate context, these duties stem from the general principles of agency and fiduciary responsibility.

Honesty is fundamental; Margaret must provide accurate information and avoid misleading Bill regarding the property. Additionally, fairness requires that Margaret treat Bill with equity and consideration, ensuring that she does not exploit his position as a prospective buyer.

While the concept of confidentiality is crucial in other agency relationships, it primarily becomes relevant once an agency agreement is established. In this case, since there is no formal agreement in place between Margaret and Bill, her duties are limited to those of honesty and fairness, which protect the interests of the prospective buyer without the full measure of obligations that come with the agency relationship.

This understanding highlights the foundational expectations that exist before any formal representation is established in a real estate transaction.