Under Ohio agency law, broker Wilson enters into a buyer representation agreement with client Garcia that specifies compensation of 3% of the purchase price. When Garcia purchases a home, the seller's listing agreement offers 2.5% cooperating compensation. What happens regarding the compensation shortfall?
Correct Answer
D) Garcia may be responsible for the 0.5% difference per the terms of the buyer representation agreement
Under Ohio law, if the buyer representation agreement specifies a compensation rate higher than the cooperating compensation offered by the listing broker, the buyer may be responsible for the shortfall per the terms of their agreement with their agent.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
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