If a seller offers to pay a buyer's agent fee through off-MLS negotiation, the buyer's agent must:
Correct Answer
C) Disclose the offer to the buyer and ensure it doesn't exceed the agreed compensation
Compensation may still be negotiated away from the MLS, so the offer itself is ordinary. What the agent owes is disclosure to the buyer and a check that the total does not exceed the figure in the buyer agreement, which caps what the broker may receive. Other choices: rejecting the offer entirely throws away money the buyer would otherwise not have to find; accepting it without telling the buyer or amending the signed agreement breaches both the disclosure duty and the cap; and there is nothing to report to NAR, because an off-MLS offer is permitted. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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