Agency
Under North Dakota law, an agency relationship with a buyer is typically created when:
AThe buyer first visits an open house
BThe buyer and broker sign a written buyer agency agreement✓ Correct
CAn agent drives a buyer to see a property
DThe buyer tells friends they are working with an agent
Explanation
A formal buyer agency relationship is created through a written buyer agency agreement signed by both the buyer and the employing broker. This agreement defines the scope of representation, the broker's duties, and any compensation arrangements.
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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.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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