Agency
In Kentucky, a buyer's agent may receive compensation from the seller's side (through the listing agreement) and still represent the buyer because:
AThis creates prohibited dual agency
BThe source of compensation does not determine who the agent represents✓ Correct
CThe buyer must approve this arrangement in writing
DCommission sharing between parties is prohibited
Explanation
The source of the compensation does not determine the agency relationship. A buyer's agent can receive compensation from the listing broker (or seller) while still representing the buyer's interests, as long as this is disclosed.
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Key Terms to Know
Agency
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Math Concepts
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