According to the NAR settlement, buyer brokers cannot:
Question & Answer
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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.
Receive compensation higher than the amount specified in the buyer agreement
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.
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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