Which of the following questions can be answered by an agent in a dual agency transaction without breaching duties to either client?

Study for the CAS 45-Hour Real Estate Principles Course Test. Utilize flashcards and multiple choice questions to prepare thoroughly. Each question is paired with hints and explanations. Get ready to excel in your exam!

In a dual agency transaction, agents represent both the seller and the buyer, which places them in a position where they must maintain confidentiality and uphold fiduciary duties to both clients. The question regarding whether the agent is aware of any structural issues with the property is particularly pertinent because it involves the agent's knowledge of facts that are material to both parties’ decisions.

Answering this question does not breach duties because it deals with truth about the property itself rather than confidential pricing strategies or negotiations that might favor one party over the other. The agent can disclose known structural issues without compromising the seller's negotiation position or the buyer's interests, thus maintaining the ethical balance required in a dual agency relationship.

On the other hand, questions related to the seller's bottom line, similar property values, or the condition of the property may divulge sensitive information that could adversely affect one party. For instance, sharing the seller’s bottom line could diminish the seller’s negotiation power, while discussing the condition of the property in a more subjective manner could provide an unfair advantage to either party, depending on the information shared. The requirement is to keep the interests of both parties protected, which is satisfied by addressing structural issues factually without impacting negotiations.

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