Sales agent Brooks has an exclusive buyer representation agreement with Buyer Kim. The agreement specifies that Brooks will earn 2.5% of the purchase price. If the seller's listing offers 3% to cooperating brokers, what happens to the 0.5% difference?
Correct Answer
A) The excess 0.5% may need to be credited to the buyer or handled per the buyer representation agreement terms
If the seller offers more compensation than the buyer representation agreement specifies, the excess must be handled according to the buyer representation agreement terms. This may involve crediting the excess to the buyer or other arrangements as agreed.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
More Texas Agency Law Questions
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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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