Idaho Real Estate Practice Exam

If a builder holds an active Idaho real estate license, what must they do when selling homes?

1. Inform the buyers of their license

2. Must provide a buyer's agent

3. Provide regular updates to the agents

4. Not disclose their role

The correct answer is: Inform the buyers of their license

When a builder holds an active Idaho real estate license and is selling homes, they are required to inform the buyers of their license status. This obligation serves several purposes: it promotes transparency in real estate transactions, protects consumers by ensuring they are aware of the builder's professional qualifications, and maintains ethical standards within the real estate industry. By disclosing their license, the builder helps buyers understand that they are dealing with a licensed professional who is subject to the same regulations and ethical guidelines as any other real estate agent. This fosters trust and confidence in the transaction process. The other options suggest actions that may not be necessary or required: providing a buyer's agent is not mandated, as buyers can choose to work with whoever they prefer; offering regular updates to agents is not a standard obligation; and not disclosing their role would be contrary to the expectations of transparency and ethical conduct required by real estate licensing authorities. Overall, informing buyers of one's license is a fundamental part of responsible real estate practice.