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According to the NAR settlement, buyer brokers cannot:

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Question & Answer

Review the question and all answer choices

A

Represent buyers in transactions

A is incorrect because buyer brokers can absolutely represent buyers in transactions. This is their primary function and a fundamental aspect of real estate brokerage. The settlement doesn't restrict their ability to represent buyers but rather places limitations on how they can be compensated.

B

Receive compensation higher than the amount specified in the buyer agreement

Correct Answer
C

Work with multiple buyers at once

C is incorrect because buyer brokers routinely work with multiple buyers at once through proper buyer representation agreements. The NAR settlement doesn't limit the number of clients a broker can represent simultaneously.

D

Negotiate on behalf of their clients

D is incorrect because negotiating on behalf of clients is a core function of buyer representation. The settlement doesn't restrict this fundamental brokerage activity but rather addresses compensation practices.

Why is this correct?

B is correct because the NAR settlement specifically prohibits buyer brokers from accepting compensation that exceeds the amount specified in their written buyer representation agreement, regardless of what a seller might offer. This prevents potential conflicts of interest where brokers might prioritize higher commissions over their clients' best interests.

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