Idaho Real Estate Practice Exam

When does someone become a client of a brokerage firm in Idaho?

1. When they make an offer on a property

2. Only upon the payment of fees

3. When they sign an agency representation agreement

4. After a verbal agreement

The correct answer is: When they sign an agency representation agreement

A person becomes a client of a brokerage firm in Idaho when they sign an agency representation agreement. This agreement is critical because it formalizes the relationship between the client and the brokerage, establishing the rights and responsibilities of both parties. The signed agreement is a legal document that outlines the terms under which the brokerage will represent the client in a real estate transaction, ensuring that the client's interests are prioritized. The process typically involves a clear understanding of the brokerage's duties, including communication, confidentiality, and fiduciary responsibilities. By signing the agency representation agreement, the individual gains client status, which affords them specific protections and rights under Idaho law. Making an offer on a property or having a verbal agreement does not create the same formal client relationship as signing the agency agreement, nor does the payment of fees automatically establish that relationship. The key factor in becoming a client is the execution of the written agreement that explicitly designates the brokerage as the representative for the client in real estate matters.