North Dakota Real Estate Practice Exam

True or False: A licensee with buyer agreements from multiple clients must disclose other offers to all clients interested in the same property.

1. True

2. False

3. Only if asked directly

4. Only if the clients are cooperating

The correct answer is: False

In real estate transactions, a licensee is held to a standard of confidentiality and loyalty toward their clients. The correct answer indicates that a licensee is not required to disclose other offers to all clients interested in the same property. This is rooted in the principle of agency, where the agent must protect the interests of each client. When a licensee has buyer agreements with multiple clients for the same property, disclosing the existence or details of other offers could undermine the negotiating position of the clients and potentially harm their interests. Additionally, such disclosure could create an ethical dilemma and compromise the agent's obligation to maintain confidentiality. While communication is important, the duty to keep clients’ information private often takes precedence, meaning that licensees must navigate these situations carefully without breaching confidentiality. In the case that clients are cooperating or ask directly about other offers, the licensee should still exercise discretion and act in accordance with their obligations under the law and the code of ethics governing real estate professionals.