If a buyer finds a property on their own after signing a buyer representation agreement, they:
Correct Answer
B) May still owe their agent compensation depending on the agreement terms
A buyer agreement usually covers any property the buyer buys during its term, however the buyer came across it, so finding the house alone does not by itself end the obligation. What governs is the wording the buyer signed. Other choices: owing nothing assumes a term the agreement is unlikely to contain; there is nothing forcing the buyer to use the listing agent instead; and cancelling without any notice ignores that the agreement sets out how it ends. 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
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
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