Idaho Real Estate Practice Exam

When working with a client who has a signed compensation agreement, what is the duty of the licensee?

1. To keep the client’s strategy confidential

2. To be available to present all offers and counter offers

3. To limit communication to emails only

4. To negotiate only under specific circumstances

The correct answer is: To be available to present all offers and counter offers

The duty of the licensee when working with a client who has a signed compensation agreement centers on the obligation to be available to present all offers and counteroffers. This is a fundamental aspect of a real estate licensee's responsibilities, as it ensures that the client is fully informed about all opportunities regarding their property transaction. By presenting all offers and counteroffers, the licensee acts as a facilitator for the client's decision-making process and helps to ensure that the client's best interests are prioritized. Maintaining this availability is crucial because it fosters open communication and trust between the client and the licensee. When clients know that their agent is dedicated to sharing all pertinent information, they can make informed choices about their transactions. This reflects the broader principle of fiduciary duty, where the licensee must act in the best interests of their client. Other options, while they may have some relevance in different contexts, do not encapsulate the primary duty imposed by a signed compensation agreement. For instance, while confidentiality is important, the overarching duty to present all offers and counteroffers takes precedence in promoting the client's decision-making capabilities. Similarly, limiting communication to emails may not serve the client's best interests in all scenarios, nor does it align with readily fulfilling the licensee's obligations under the