Agency
In Tennessee, a 'buyer's premium' charged in a real estate auction represents:
AThe buyer's agent commission
BAn additional fee charged to the buyer above the winning bid amount✓ Correct
CThe difference between the reserve price and the final bid
DThe seller's contribution to closing costs
Explanation
A buyer's premium is an additional fee charged to the winning bidder at an auction, calculated as a percentage of the high bid. For example, a 10% buyer's premium on a $200,000 winning bid results in a total purchase price of $220,000. This must be disclosed to all bidders before the auction.
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