Under the new rules, how can a buyer's agent be compensated?
Correct Answer
C) By the buyer, seller (through negotiation), or a combination
Every route stays open except the MLS: the buyer may pay, the seller may contribute through negotiation, or the two may be combined so that a seller contribution reduces what the buyer owes under the agreement. Other choices: saying only the buyer directly ignores that seller contributions continue; only the seller through a compensation term in the listing agreement puts the buyer agreement out of the picture, when that is the document that binds the buyer; and a fixed MLS cooperative compensation is precisely the route that closed. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
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.
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.
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