Maine Real Estate License Practice Exam

What is a limitation imposed on a Disclosed Dual Agent?

1. Cannot represent clients in multiple sales

2. Must conduct detailed market analyses

3. Cannot disclose motivation of either party

4. Must ensure properties are listed fairly

The correct answer is: Cannot disclose motivation of either party

A Disclosed Dual Agent occupies a unique role in real estate transactions, acting on behalf of both the buyer and the seller. One of the key limitations imposed on such an agent is the obligation to maintain confidentiality regarding the motivation and personal circumstances of each party involved in the transaction. This means that the agent cannot disclose to one party what the other party may be willing to accept in terms of price or other conditions, thereby safeguarding the negotiating positions of both clients. This limitation is in place to ensure that the agent remains impartial, providing fair representation without compromising the interests of either party. Maintaining confidentiality is crucial in fostering trust and ensuring that both the buyer’s and the seller’s needs and motivations are respected throughout the negotiation process. The other options reflect practices that are not necessarily limitations unique to dual agents. Representation in multiple sales, conducting market analyses, and ensuring fair listings are general responsibilities of agents and do not specifically address the dual agency context. Thus, the confidentiality about the motivations of both parties stands out as a significant ethical obligation specific to a Disclosed Dual Agent.