Idaho Real Estate Practice Exam

In a situation where a seller representation agreement has expired, what must the original listing agent do if a buyer is interested?

1. Assist the buyer without disclosing duties owed

2. Explain disclosures and duties owed to the customer

3. Negotiate a new representation agreement immediately

4. Transfer the buyer interest to the new agent

The correct answer is: Explain disclosures and duties owed to the customer

When a seller representation agreement expires, the original listing agent still has an obligation to adhere to the professional and ethical standards set forth in real estate practices. If a buyer expresses interest in the property after the expiration of the agreement, the listing agent must explain the disclosures and duties owed to the customer. This means the agent has to clarify their role and the nature of their relationship with both the buyer and the seller. This option is significant because it emphasizes the importance of transparency and ethical conduct in real estate transactions. The agent must ensure that the buyer understands that they are no longer representing the seller since the agreement has expired and that they are now handling the buyer as a customer. Failure to disclose this relationship could lead to misunderstandings or ethical violations. The other options do not fulfill the necessary requirements outlined in real estate regulation and practice. For instance, assisting a buyer without disclosing duties could lead to conflicts of interest and unethical practices. Negotiating a new representation agreement without proper context or authorization would also breach protocol. Transferring the buyer's interest to a new agent skips crucial communication and doesn’t address the current obligations of the original agent. Hence, explaining disclosures and duties owed ensures compliance with regulatory standards and maintains professional integrity.