Idaho Real Estate Practice Exam

In Limited Dual Agency arrangements, what is a key responsibility of the agent?

1. Represent both parties equally without bias

2. Advise clients to find independent counsel

3. Ensure full disclosure of all relevant information

4. Manage all interactions with the buyers

The correct answer is: Represent both parties equally without bias

In a Limited Dual Agency arrangement, the agent's key responsibility is to represent both parties equally without bias, ensuring that neither party feels disadvantaged in the transaction. This requires the agent to maintain an impartial stance while facilitating communication and negotiation between the buyer and the seller. By balancing the interests of both parties, the agent helps to foster a fair environment, which is essential in dual agency situations where conflicts of interest may arise. While advising clients to seek independent counsel and ensuring full disclosure of all relevant information are also important aspects of an agent's duties, the essence of Limited Dual Agency lies in the agent's ability to remain neutral and fair during the representation of both parties. Managing all interactions with the buyers may not accurately reflect the agent's responsibility, as the agent must also ensure that the seller's interests are represented adequately. Thus, maintaining this impartial representation is fundamental to the agent's role in Limited Dual Agency.