A buyer representation agreement must include all of the following EXCEPT:
Correct Answer
C) The seller's minimum acceptable price
The agreement is between the buyer and the broker, so it carries what the buyer is agreeing to: the fee, a statement that it is negotiable, and what the buyer gets for it. The seller's minimum acceptable price belongs to a different party's confidential instructions and could not be in it. Other choices: the amount or rate of compensation must be objective and stated; a statement that compensation is negotiable is required precisely because buyers assumed it was not; and the services to be provided are what the fee buys. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
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