Idaho Real Estate Practice Exam

What must a salesperson provide to a buyer who expresses interest in purchasing a home without a buyer representation agreement?

1. A market analysis report of the property

2. The agency disclosure brochure explaining agency laws

3. A list of available properties

4. A written agreement for representation

The correct answer is: The agency disclosure brochure explaining agency laws

In a real estate transaction, when a buyer expresses interest in purchasing a home but has not entered into a buyer representation agreement, it is mandatory for the salesperson to provide the agency disclosure brochure. This brochure is crucial because it informs the buyer about agency relationships and their rights within the transaction. It clarifies the roles of the agent, whether they are acting as a representative of the buyer or a seller, and outlines the duties owed to each party involved. The agency disclosure helps ensure that buyers understand the nature of the relationship they are entering into with the salesperson. It plays a significant role in fostering transparency and trust between buyers and real estate professionals. Additionally, this document can protect both the buyer and the agent by preventing misunderstandings about representation and compensation. While providing a market analysis report, a list of available properties, or a written agreement for representation might also serve specific needs in the buying process, them, in this scenario, are not mandated by law when no buyer representation agreement is in place. This reinforces the importance of the agency disclosure brochure as the correct choice in this context.