Agency

A Florida buyer signs a buyer representation agreement with an exclusive right to represent clause. The buyer later sees a FSBO and wants to purchase it. Under the agreement, the buyer:

AIs free to purchase any FSBO since the agreement only covers listed properties
BMust inform the broker and the broker may attempt to represent the buyer in the FSBO transaction✓ Correct
CMay terminate the agreement without penalty for FSBO purchases
DMust wait until the agreement expires before purchasing the FSBO

Explanation

An exclusive right to represent agreement means the buyer is obligated to use the buyer's broker for any purchase during the agreement term. The buyer must notify the broker about the FSBO opportunity. The broker can then contact the FSBO seller to negotiate compensation and represent the buyer in the transaction. Purchasing the FSBO without using the broker may still obligate the buyer to pay the broker's fee.

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