Iowa Real Estate Practice Exam

What can a listing agent do when a buyer shows interest without a buyer agency agreement?

1. Show the property without asking any questions

2. Purchase the property themselves

3. Charge a viewing fee

4. Negotiate a buyer agency agreement on the spot

The correct answer is: Show the property without asking any questions

When a buyer shows interest without a buyer agency agreement, the listing agent can show the property to that buyer without needing to establish an immediate formal relationship. This means that the listing agent can engage with the buyer and provide access to the property, as they have a fiduciary responsibility primarily to the seller. However, it is important for the agent to be cautious and clarify their role—making it clear that they are representing the seller's interests, not the buyer's. While the listing agent has the ability to show the property, they should ideally still gather some basic information to understand the buyer's level of interest and needs. This could help facilitate a more meaningful and beneficial interaction, potentially leading to future buyer representation if that becomes appropriate. Other options presented in the question do not align with the duties and ethical standards of a listing agent. For instance, purchasing the property themselves would conflict with their fiduciary duty to the seller. Charging a viewing fee is uncommon and typically not standard practice in real estate transactions. Lastly, negotiating a buyer agency agreement on the spot is possible, but it typically requires more than just a casual interaction to draw up an agreement that ensures the buyer is fully represented with their interests in mind.