If a buyer wants to see a For Sale By Owner (FSBO) property, what is required under the new rules?
Question & Answer
Review the question and all answer choices
A written buyer agreement is still required
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.
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.
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.
Continue Learning
Explore this topic in different formats
More Buyer Representation Videos
Continue learning with related video lessons
Under the new rules, how can a buyer's agent be compensated?
3:02 • 0 views
What must happen if a buyer wants to switch from one buyer's agent to another?
3:26 • 0 views
What is a key benefit for buyers under the new representation rules?
2:48 • 0 views
Which of the following practices is NOW PROHIBITED under the NAR settlement?
2:36 • 0 views
The purpose of the NAR settlement changes is primarily to:
2:44 • 0 views
Ready to Ace Your Real Estate Exam?
Access 2,000+ free video lessons covering all 11 exam topics.