What must happen if a buyer wants to switch from one buyer's agent to another?
Correct Answer
B) The original agreement must be ended on its terms before a new one is signed
A buyer agreement is a contract, so leaving it means ending it on its own terms — letting it expire, or negotiating an early release — before signing with somebody else. Other choices: switching freely at any time ignores that a contract was signed; paying both agents full commission is not automatic, though an unresolved agreement can leave a buyer exposed to a claim, which is the reason to end it properly; and the two agents agreeing in writing to split the commission is a deal between brokers that does nothing about the buyer's own obligation. Source: NAR settlement practice changes, effective 17 August 2024.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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.
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