Idaho Real Estate Practice Exam

When must an agency representation agreement be signed according to Idaho law?

1. Before the closing of the deal

2. Before signing an offer purchase

3. At the property showing

4. After the offer is accepted

The correct answer is: Before signing an offer purchase

In Idaho, an agency representation agreement must be signed before signing an offer to purchase. This requirement is in place to ensure that both the client and the agent clearly understand their relationship and the terms of their agreement prior to entering into a contract to buy or sell real estate. Having this agreement signed first establishes the duties and responsibilities of the agent and provides the buyer or seller with the necessary disclosures, helping to protect their interests throughout the transaction process. This legal framework helps to prevent misunderstandings and ensures that both parties are aware of and agree to the scope of the services that will be provided. Thus, signing the agency representation agreement prior to making an offer is an essential step in the process of real estate transactions in Idaho.