A buyer signs an exclusive buyer representation agreement with Agent A, then purchases a property by submitting an offer through Agent B without notifying Agent A. Which of the following best describes the buyer's legal exposure?
Correct Answer
B) The buyer may owe Agent A a commission under the exclusive representation agreement, regardless of which agent assisted with the offer
An exclusive buyer representation agreement is a legally binding contract enforceable under California's Statute of Frauds, Civil Code §1624(a)(4). Under its terms, the buyer typically owes the designated agent a commission on any property purchased during the agreement period, regardless of which agent actually assisted with the transaction. Procuring cause is relevant in disputes between agents or brokers, but it does not override the buyer's contractual obligation to Agent A under an exclusive agreement.
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Under California law, which of the following would most likely create a valid implied agency relationship, even without a written agreement?
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