What happens to the buyer's agent compensation if the seller refuses to contribute?
Question & Answer
Review the question and all answer choices
The agent works for free
A is incorrect because real estate agents are professionals who earn compensation for their services. They don't work for free, even when sellers refuse to pay buyer agent commissions. The compensation is either paid by the buyer per their agreement or negotiated differently before closing.
The buyer is responsible as outlined in their agreement
The transaction is automatically cancelled
C is incorrect because the seller's refusal to pay buyer agent compensation doesn't automatically terminate the transaction. The buyer can still proceed with purchasing the property and simply pay their agent directly as per their agreement.
The listing agent must pay
D is incorrect because there is no requirement that listing agents must pay buyer agents. Listing agents are contracted to work for the seller's benefit and are paid by the seller, not responsible for compensating other agents.
Why is this correct?
B is correct because buyer representation agreements are legally binding contracts between the buyer and their agent. When the seller refuses to contribute, the buyer remains responsible for their agent's compensation as specified in this agreement, regardless of the seller's position.
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