Broker Foster lists a property and enters it into the MLS. The MLS listing offers 3% compensation to cooperating brokers. A buyer's broker brings a buyer and the sale closes. After closing, the buyer's broker sends an invoice for 3.5%, claiming their buyer representation agreement specifies 3.5%. Who owes the difference?
Correct Answer
A) The buyer must pay the 0.5% difference to their own broker per the buyer representation agreement
The MLS offers 3% to the cooperating broker. If the buyer's representation agreement specifies 3.5%, the buyer may be responsible for the 0.5% difference per the terms of their own buyer representation agreement. The listing broker is only obligated to pay the offered amount.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
More Texas Agency Law Questions
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A Texas license holder provides the IABS form to a buyer at their first meeting. Two weeks later, the buyer contacts the license holder about a different property. Must the license holder provide the IABS again?
A married couple visits an open house together. Sales agent Foster provides the IABS to the wife but not the husband. If both spouses are interested in purchasing the property, has Foster satisfied the IABS requirement?
Agent Parker provides the IABS to Buyer Harris at the first showing. Later, Harris signs a buyer representation agreement with a completely different brokerage firm. When Harris contacts Parker about another property, Parker's firm still has a listing on, must Parker provide the IABS again?
In Texas, a sales agent who is assigned by the intermediary broker to communicate with and carry out instructions of one party in a transaction is known as a(n):
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