Since the August 2024 NAR settlement changes, a buyer's broker is working with a buyer on a property listed at $525,000. The MLS carries no offer of compensation. The buyer's broker asks what now determines what she is paid.
Correct Answer
A) The written buyer representation agreement she signed with her buyer
Offers of compensation to buyer brokers are no longer published through the MLS, and a buyer's broker working with a buyer agrees her compensation with that buyer in writing before touring homes. The seller or listing broker may still contribute, but that is negotiated rather than assumed. Other choices: the MLS does not carry the offer in another field, which is the change itself; there is no market default share, and treating 2.5% as one is the assumption the settlement was about; and leaving it to the listing broker's choice after closing is the arrangement the written agreement replaces.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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