A buyer's written agreement must clearly state that:
Question & Answer
Review the question and all answer choices
The buyer will purchase a home within 90 days
Option A is incorrect because buyer's written agreements don't require a specific timeframe for home purchase. While many agreements may include a termination period, there's no legal requirement for a 90-day timeframe. The agreement duration is negotiable between the buyer and agent, typically ranging from 30 days to several months, depending on the market and buyer's needs.
Broker fees and commissions are not set by law and are fully negotiable
The seller will always pay the buyer's agent commission
Option C is incorrect because while sellers commonly pay buyer agent commissions, this is not a requirement and can be negotiated or structured differently in certain transactions.
The buyer must use the agent's preferred lender
Option D is incorrect because buyer representation agreements cannot mandate the use of a specific lender, as this would violate RESPA regulations against steering and limit consumer choice.
Why is this correct?
Option B is correct because real estate commissions are not standardized by law and are fully negotiable between parties. Buyer representation agreements must explicitly state this to comply with federal antitrust laws and ensure transparency in compensation arrangements.
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