Idaho Real Estate Practice Exam

If an Idaho real estate company has agreements with both a buyer and a seller, can the buyer make an offer on the seller's property?

1. No, that is illegal

2. Yes, if the agreements remain confidential

3. Yes, if both parties consent

4. No, this is considered double dipping

The correct answer is: Yes, if both parties consent

In the scenario where an Idaho real estate company has agreements with both a buyer and a seller, it is permissible for the buyer to make an offer on the seller's property as long as both parties provide their consent. This consent is essential because it ensures that the interests of both the buyer and the seller are protected and that there are no conflicts of interest. Real estate agents often work with multiple clients simultaneously. However, it is critical for the agent to maintain transparency and obtain consent from both parties to navigate the dual representation ethically. This situation, known as dual agency, requires the agent to disclose their dual role and the implications it may have on the transaction. Hence, as long as the necessary disclosures are made and both parties consent, the buyer can indeed make an offer on the seller's property. Confidentiality is also a factor; while maintaining the confidentiality of the agreements is important, it is not the sole condition that governs whether the buyer can make an offer. The necessity of explicit consent makes this option the most appropriate in the context of real estate practice in Idaho.