If a buyer wants to see a For Sale By Owner (FSBO) property, what is required under the new rules?
Correct Answer
A) A written buyer agreement is still required
The requirement is triggered by two things: an MLS Participant working with a buyer, and the buyer touring a home. Neither turns on where the home is listed, so a written agreement is needed before touring a for-sale-by-owner house just as it is before touring an MLS listing. Other choices: saying no agreement is needed for FSBO properties reads a limit into the rule that its wording does not contain; having the FSBO seller sign the buyer agreement confuses the buyer's agreement with the seller's, as the seller is not a party to it; and nothing stops an agent showing FSBO properties at all. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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.
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