What happens to the buyer's agent compensation if the seller refuses to contribute?
Correct Answer
B) The buyer is responsible as outlined in their agreement
The buyer agreement is between the buyer and the broker, so if no seller contribution arrives the buyer owes the figure it states. This is why the amount has to be settled in writing before touring. Other choices: the agent does not work for free, because the agreement is what creates the obligation; the transaction is not canceled, and there is nothing making a listing broker cover the difference; and the listing agent has no duty to pay a broker it did not contract with. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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