Idaho Real Estate Practice Exam

What should a broker do if they have an in-house listing and work with a buyer?

1. Act as a dual agent only for the seller

2. Only consult with the buyer's agent

3. Choose a single agency approach

4. Refer the buyer to another agent

The correct answer is: Choose a single agency approach

Choosing a single agency approach is the correct response in this scenario because it allows the broker to represent either the seller or the buyer exclusively, with undivided loyalty to one party. In real estate, a single agency relationship provides clarity and ensures that the broker is working in the best interest of their client, whether that client is the seller or the buyer. This approach is particularly important in situations involving an in-house listing because dual agency can create conflicts of interest. When the same broker represents both the buyer and the seller, it can be challenging to maintain neutrality and advocate for the best interests of both parties equally. A single agency approach eliminates this potential conflict, enhancing transparency and trust in the transaction. In contrast, acting as a dual agent only for the seller, consulting solely with the buyer's agent, or referring the buyer to another agent do not provide the same level of service and commitment. These options may compromise the representation and support the broker can offer to either party involved in the transaction. By opting for a single agency approach, the broker ensures that their role is clear and focused, helping either the seller or buyer to navigate the complexities of the real estate transaction effectively.