Maine Real Estate License Practice Exam

Which of the following would be considered a violation of real estate regulations?

1. Providing earnest money receipts

2. Failing to disclose dual agency

3. Helping clients with contracts

4. Working with multiple clients simultaneously

The correct answer is: Failing to disclose dual agency

Failing to disclose dual agency is considered a violation of real estate regulations because it directly impacts the transparency and integrity of the transaction. In dual agency, a real estate agent represents both the buyer and the seller in the same transaction. This situation can create a conflict of interest, as the agent must balance the interests of both parties. Real estate regulations require agents to disclose this dual relationship to both the buyer and the seller before any agreements are made. When an agent does not disclose this information, it undermines the trust that is essential in real estate transactions and can lead to unfair advantages. Proper disclosure is not only an ethical obligation but also a legal requirement meant to protect all parties involved. The other choices, such as providing earnest money receipts, helping clients with contracts, and working with multiple clients simultaneously, do not inherently violate regulations, provided that the agent is acting within the framework of the law and adhering to ethical standards in those practices.