Agency
A buyer's agent who negotiates a transaction is entitled to a commission from:
AAlways the buyer
BAlways the seller through the listing broker's commission split
CEither the buyer or through a commission split from the seller, depending on the buyer representation agreement terms✓ Correct
DIDFPR's commission disbursement fund
Explanation
A buyer's agent's compensation may come from various sources depending on the agreement: through a commission split from the listing broker (most common in traditional transactions), directly from the buyer, or a combination. The buyer representation agreement defines the compensation arrangement.
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Key Terms to Know
Buyer's Agent
A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Math Concepts
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