Which statement about buyer agent compensation under the new rules is TRUE?
Correct Answer
B) Compensation must be disclosed and negotiated before showing properties
The figure has to be settled in writing before the buyer tours anything, which is what makes it negotiable in practice rather than in theory: a buyer who knows the number before seeing houses can argue about it. Other choices: sellers are not prohibited from paying any part of the buyer agent's fee, and many still do, off the MLS; requiring all buyer agents to charge the same rate would be the price fixing the case was about; and buyer agent fees are not regulated by the government, which is why the agreement has to state them. 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'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.
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- → Under the new rules, how can a buyer's agent be compensated?
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