What happens if a buyer refuses to sign a buyer representation agreement?
Correct Answer
B) The agent cannot tour any home with that buyer
A buyer is free to refuse, and the consequence falls on what the agent may then do: with no agreement signed, the agent cannot tour homes with that buyer. The buyer can still go to open houses, or work with a different agent on different terms. Other choices: an agent who shows homes without a written agreement has broken the rule rather than found a way round it; no penalty fee attaches to a buyer who declines to sign, because the buyer is not bound by anything; and nothing makes the listing agent represent the buyer, who at that point has no representation at all. 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 by the conduct or actions of the parties rather than by a written or oral agreement.
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.
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