A buyer's written agreement must clearly state that:
Correct Answer
B) Broker fees and commissions are not set by law and are fully negotiable
The line about fees not being set by law has to appear because the belief that they were set is what the case was about; putting it in front of the buyer at signing is the point of the whole change. Other choices: nothing requires the buyer to purchase a home within 90 days, and an agreement saying so would be a term, not a rule; saying the seller will pay the commission whenever one is offered promises something the seller has not agreed to; and requiring the buyer to use the preferred lender is a tie-in that has nothing to do with the representation. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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