Maine Real Estate License Practice Exam

What type of information can a Disclosed Dual Agent disclose to one party if it is relevant to the transaction?

1. The fact the buyer is pre-approved for a mortgage

2. That a fire destroyed a barn on the property

3. That the furnace malfunctioned three years ago

4. Confidential negotiating strategy not disclosed in the Purchase and Sale agreement

The correct answer is: Confidential negotiating strategy not disclosed in the Purchase and Sale agreement

A Disclosed Dual Agent has a unique responsibility in balancing the interests of both parties involved in a real estate transaction. This agent can disclose relevant information to one party, but certain types of information remain confidential to maintain fairness and trust. The correct answer focuses on confidential negotiating strategies which typically should not be shared with the opposing party unless expressly agreed upon. This is critical for maintaining the integrity of the negotiation process. Discussing details such as the buyer’s pre-approval status or issues like the barn fire and the furnace malfunction could impact the negotiation dynamics. For example, revealing that the buyer is pre-approved could put pressure on the seller, while disclosing past issues with the property might affect the buyer's perception and decision. Therefore, confidential negotiating strategies are designed to stay confidential, thus helping to protect the interests of both parties and ensure a fair negotiation process. Other information, while potentially relevant to the transaction, tends to affect the negotiation directly and appropriately remains within the privacy standards set by real estate transaction rules.