For a buyer's broker to be able to negotiate their fee directly with the buyer, the broker must enter into a written employment agreement with the buyer, called a(n):
Correct Answer
A) buyer-broker representation agreement.
A buyer's broker earns the right to compensation from the buyer through a written employment agreement signed by the buyer, now generally called a buyer-broker representation agreement. That agreement states the scope of the broker's authority, the term, and the amount or rate of compensation, which is what makes a fee negotiated with the buyer enforceable rather than dependent on whatever the listing side offers to share. Without a signed agreement the broker has no contract with the buyer on which to claim a fee.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
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.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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:
- → Under California Business and Professions Code §10140.6, what must a licensee disclose on solicitation materials intended to be the first point of contact with consumers, such as a business card or an open house sign?
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- → A California real estate salesperson leaves one brokerage and is retained by another. Who reports the change to the Department of Real Estate, and by when?
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- → All of the following statements are true concerning an in-house sale, except:
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