A buyer representation agreement should specify:

In real estate practice, the buyer representation agreement is a foundational document that establishes the professional relationship between a buyer and their agent. This question tests your understanding of what specific elements must be clearly defined in this legally binding contract. The correct answer focuses on compensation specificity, which is crucial for several reasons. First, it prevents disputes and misunderstandings about payment terms. Second, it ensures transparency in the business relationship. Third, most state real estate licensing laws require specific compensation terms to avoid ambiguity. When analyzing this question, you should recognize that while property preferences (A) and seller information (D) might be helpful, they aren't legally required elements. The specific purchase price (C) is determined through negotiation and can't be predetermined. Compensation (B), however, must be clearly specified as it forms the basis of the business arrangement and is subject to regulatory requirements.