Agency
Under Rhode Island law, which statement about buyer agency agreements is correct?
AThey are prohibited in Rhode Island
BThey create an agency relationship between the broker and buyer✓ Correct
CThey are only enforceable if notarized
DThey must be registered with the DBR
Explanation
Buyer agency agreements are legal in Rhode Island and create a formal agency relationship between the broker and the buyer, establishing the broker's duties and compensation arrangement.
People Also Study
Related Rhode Island Questions
- What is a 'designated agency' arrangement in Rhode Island?Agency
- When does an agency relationship between a Rhode Island licensee and client typically terminate?Agency
- What is the significance of the Rhode Island 'Agency Relationship Disclosure' form?Agency
- In Rhode Island, what is an 'implied agency' relationship?Agency
- A Rhode Island property manager who signs a management agreement with a property owner has entered into which type of agency relationship?Property Management
- Which state agency is responsible for licensing real estate professionals in Rhode Island?Rhode Island License Law
- Rhode Island's 'cooling off period' for signed listing agreements allows a seller to cancel within:Rhode Island License Law
- Which Rhode Island state agency is responsible for licensing and regulating real estate brokers and salespersons?Rhode Island License Law
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.
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →