For a buyer’s broker to have the ability to negotiate their fee, the buyer’s broker needs to enter into an employment agreement with their buyer, called a(n):
Correct Answer
A) buyer’s listing.
A buyer's listing agreement — also called a buyer representation agreement or buyer-broker agreement — is the employment contract between a buyer and their broker that grants the broker the authority to represent the buyer and establishes the negotiated compensation terms. This agreement is the legal instrument through which the broker's fee is defined and made enforceable, giving the broker the contractual standing to negotiate their compensation directly with the buyer rather than relying on the listing broker's cooperative fee offer.
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