What happens if a buyer refuses to sign a buyer representation agreement?
Question & Answer
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The agent can still show MLS properties
A is incorrect because showing MLS properties without a signed buyer representation agreement violates MLS rules and recent NAR settlement requirements. Agents risk losing MLS access privileges and could face legal consequences for showing properties without proper authorization.
The agent cannot show MLS-listed properties to that buyer
The buyer must pay a penalty fee
C is incorrect because refusing to sign an agreement doesn't automatically create a penalty fee. Penalties would only exist if specified in a contract or required by law, which isn't the case here.
The listing agent must represent the buyer
D is incorrect because the listing agent already has a contractual obligation to represent the seller. They cannot automatically switch to representing the buyer without proper disclosure and consent from both parties.
Why is this correct?
B is correct because under the NAR settlement rules, agents must have a signed buyer representation agreement before showing MLS-listed properties to a buyer. This requirement protects both parties by establishing clear agency relationships and ensuring compliance with MLS access policies.
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