The written buyer agreement requirement applies to:
Correct Answer
C) Any buyer the agent tours homes with
The rule is drawn by conduct, not by category of buyer: an MLS participant working with a buyer needs the agreement before touring, whoever that buyer is. Other choices: limiting it to first-time homebuyers invents a class distinction the changes do not draw; limiting it to buyers looking at homes listed above the local median price invents a price threshold; and limiting it to buyers who want exclusive representation confuses the written agreement with the kind of relationship it records, which the changes deliberately left open. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A legal relationship in which one person (the agent) is authorized to act on behalf of another person (the principal) in business transactions with third parties.
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
More General Principles Of Agency Questions
A listing agreement creates an agency relationship between:
A property management agreement between an owner and a property manager typically specifies which of the following?
What is 'designated agency' in the context of a real estate brokerage?
A real estate team receives a referral from a past client. The team leader assigns the referral to a team member. The team member shows the buyer several properties. Who is the buyer's agent?
A buyer's agent compensation can be structured as:
- → A commercial tenant is negotiating a five-year lease for retail space. The tenant hires a tenant representative broker to negotiate lease terms on the tenant's behalf. What agency relationship exists between the tenant and the tenant representative?
- → A property manager signs a lease on behalf of the property owner. The management agreement authorizes the manager to execute leases for terms up to one year. The manager signs a three-year lease with a commercial tenant. What is the likely consequence?
- → A property manager discovers that a rental unit has a significant mold problem. The manager repairs the visible mold but does not inform the property owner about the extent of the damage or the potential liability. Has the property manager violated any agency duty?
- → A listing agent tells prospective buyers that the home sits on 'the finest street in the whole county' and is 'a once-in-a-lifetime opportunity.' These statements are best characterized as:
- → Real estate commissions are typically based on:
- → Under the new rules, how can a buyer's agent be compensated?
- → Casey Patel is hired only to find a ready, willing, and able buyer for Morgan Flores's duplex and has no authority over Morgan's other affairs. Classified by the scope of authority granted, what type of agent is Casey?
- → Casey Patel asks a licensee to unlock homes and write up an offer but refuses to sign any representation agreement. What is Casey's usual status relative to that brokerage?
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