California Real Estate Practice Exam

As a dual agent, what should a broker not reveal during a transaction?

1. That the property has known defects

2. The lowest price the seller will accept

3. That the buyer will pay more than the offering price

4. The motivation of either party

The correct answer is: That the buyer will pay more than the offering price

A broker acting as a dual agent is representing both the buyer and the seller in a real estate transaction. This situation requires the broker to maintain a neutral position and not disclose any confidential information that could potentially harm one party or benefit the other. Option C, revealing that the buyer will pay more than the offering price, would give the seller an unfair advantage and compromise the broker's neutrality. Options A and D could potentially be revealed by the broker as they are not considered confidential information. Option B could also be revealed, but it is not required and may not be in the best interest of the seller. So while options A, B, and D may not be ideal for a broker to reveal, option C is specifically prohibited and could be considered unethical.