Which statement about buyer agent compensation under the new rules is TRUE?
Question & Answer
Review the question and all answer choices
Sellers are prohibited from paying buyer agent fees
Option A is incorrect because sellers are not prohibited from paying buyer agent fees. In fact, this practice is common, but it must be separately negotiated and disclosed properly to all parties.
Compensation must be disclosed and negotiated before showing properties
All buyer agents must charge the same rate
Option C is incorrect because buyer agents are not required to charge the same rate. Compensation rates are negotiable and can vary based on market conditions, services offered, and agreement between parties.
Buyer agent fees are now regulated by the government
Option D is incorrect because buyer agent fees are not directly regulated by the government. While federal laws like RESPA may influence certain aspects, compensation is primarily governed by industry standards and state regulations.
Why is this correct?
Option B is correct because current regulations require buyer agent compensation to be disclosed and agreed upon in writing before properties are shown. This ensures transparency and protects both buyers and agents by establishing clear financial expectations early in the relationship.
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