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If a buyer wants to see a For Sale By Owner (FSBO) property, what is required under the new rules?

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Question & Answer

Review the question and all answer choices

A

A written buyer agreement is still required

Correct Answer
B

No agreement is needed for FSBO properties

No agreement is needed for FSBO properties is incorrect because even without MLS involvement, buyer agents need written agreements to establish their representation duties, clarify compensation terms, and protect themselves in potential disputes.

C

The FSBO seller must sign the buyer agreement

The FSBO seller must sign the buyer agreement is incorrect because buyer agreements establish the relationship between the buyer and their agent, not involving the seller unless it's a dual agency situation, which is generally not allowed in most states.

D

FSBO properties cannot be shown by agents

FSBO properties cannot be shown by agents is incorrect because agents can absolutely show FSBO properties; they simply need proper authorization and a written buyer agreement to represent the buyer in such transactions.

Why is this correct?

A written buyer agreement is still required for FSBO properties because while the NAR settlement rules specifically address MLS-listed properties, best practices mandate written agreements for all transactions to establish clear representation terms, agency relationships, and compensation expectations, protecting both the agent and buyer.

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