A buyer's agent compensation can be structured as:
Correct Answer
B) A flat fee, percentage, or hourly rate
What the written agreement has to do is state the fee objectively; it does not prescribe a shape, so a flat fee, a percentage and an hourly rate are all available, as is a combination. Other choices: saying only a percentage of the final sale price locks in the very structure the case was about; only a flat fee and only an hourly rate each pick one permitted form and exclude the rest. The requirement is that the figure be specific and not open-ended. 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 by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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