In Kentucky, buyer Martinez signs a written buyer representation agreement with Agent Lopez. Two weeks later, Martinez decides he no longer wants Agent Lopez's services and begins working directly with a listing agent. Which of the following statements is most accurate regarding Martinez's obligations under Kentucky agency law?
Correct Answer
D) Martinez may be bound by the terms of the written buyer representation agreement, including any compensation provisions
Under Kentucky contract law and agency principles consistent with KRS Chapter 324, a written buyer representation agreement is a legally binding contract. Once signed, Martinez may be bound by its terms, including any provisions regarding the agent's compensation if Martinez purchases a property during the agreement period. Terminating agency relationships is subject to the terms of the written agreement, and simply working with another agent does not automatically void the existing contractual obligations.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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