Question

A dual agent owes equal ____ to both parties of a transaction. In this situation the broker cannot reveal to the seller that the buyer will pay ____ than the listing price, nor to the buyer that the seller will accept ____ different than are listed or a ____ price than is listed.

1.loyalty.
2.more (higher, or greater).
3.terms.
4.lower (less, or smaller).

Answer 1

A dual agent owes equal loyalty to both parties of a transaction. This situation is an example of asymmetric information.

Step-by-step explanation:

A dual agent owes equal loyalty to both parties of a transaction. In this situation, the broker cannot reveal to the seller that the buyer will pay more than the listing price, nor to the buyer that the seller will accept terms different than are listed or a lower price than is listed.

This situation is an example of asymmetric information, where one party has more information than the other regarding the quality of the item for sale.