Idaho Real Estate Practice Exam

In a scenario of limited disclosed dual agency, what is a salesperson allowed to do?

1. Only represent one party in the transaction

2. Negotiate terms on behalf of both parties regardless of consent

3. Proceed with the transaction without informing both parties

4. Act under specified consent until a purchase and sale agreement is prepared

The correct answer is: Act under specified consent until a purchase and sale agreement is prepared

In a situation involving limited disclosed dual agency, a salesperson is permitted to act under specified consent until a purchase and sale agreement is prepared. This means that the salesperson can represent both parties in the real estate transaction, but only with the clear understanding and agreement of both parties involved. This configuration ensures that both parties are aware of the dual agency relationship and have consented to it, allowing the salesperson to effectively negotiate and facilitate the transaction while maintaining transparency. It fosters trust as it clarifies roles and responsibilities between the agent and the clients. The other options are not applicable in this context. For instance, representing only one party would not align with the definition of dual agency. Likewise, negotiating terms without the consent of both parties goes against the very principles of dual agency which prioritize informed agreement. Finally, proceeding with the transaction without informing both parties severely undermines the ethical and legal standards governing real estate practices, thereby jeopardizing the integrity of the transaction.