AgencyIntermediateCalifornia Exam

What is a 'buyer representation agreement' and what does it accomplish?

AA contract between the buyer and seller establishing purchase terms, per standard fiduciary practice in the industry
BA contract between a buyer and a broker authorizing the broker to represent the buyer's interests in finding and purchasing real propertyCorrect
CAn agreement between two buyers to purchase property jointly, under standard California agency practice
DA contract between a buyer's broker and listing broker to cooperate, as commonly applied in brokerage relationships

Why A contract between a buyer and a broker authorizing the broker to represent the buyer's interests in finding and purchasing real property Is Correct

Answer B: A contract between a buyer and a broker authorizing the broker to represent the buyer's interests in finding and purchasing real property

A buyer representation agreement (buyer's agency agreement) is an employment contract between a buyer and a broker. It establishes the broker as the buyer's agent, defines the scope of the relationship, compensation terms, and duration.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

Key Agency Terms in This Question

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