Agency
A Mississippi transaction involves a listing broker and a buyer's broker. The listing broker receives the full commission and pays the buyer's broker a portion as co-op compensation. This arrangement means the buyer's broker is most likely:
AA subagent of the seller
BAn independent contractor in a cooperative relationship; the payment of compensation does not alone determine agency✓ Correct
CAn employee of the listing broker
DA dual agent automatically
Explanation
Payment of compensation from the listing broker to the buyer's broker does not create subagency or make the buyer's broker the listing broker's agent. The buyer's broker represents the buyer (per their buyer agency agreement) regardless of how compensation is paid. Compensation structure and agency are separate concepts.
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