Iowa Real Estate Practice Exam

What can a salesperson legally provide to a buyer in a consensual dual agency agreement?

1. Appraisal reports of the property

2. Comparable market data about the seller's property

3. Internal commission structures

4. Confidential negotiations with the seller

The correct answer is: Comparable market data about the seller's property

A salesperson operating under a consensual dual agency agreement can legally provide comparable market data about the seller's property to a buyer. In this situation, the salesperson represents both parties in the transaction—the seller and the buyer. It is essential for the salesperson to maintain transparency while navigating the interests of both clients. Providing comparable market data is permissible because it helps the buyer make an informed decision based on how the seller's property stacks up against similar properties in the market. This type of information is valuable and does not violate the confidentiality expected between the agent and the seller since it consists of general market statistics rather than sensitive information. Additionally, the other options present challenges or conflicts in terms of agency duties and confidentiality obligations. For example, appraisal reports might require the appraiser's permission to share, while sharing internal commission structures would breach the fiduciary duty of a dual agent by revealing confidential financial agreements. Lastly, engaging in confidential negotiations with the seller on behalf of the buyer would create a conflict of interest and violate the trust that the seller has placed in the agent.