Agency
A Utah buyer's agent who agrees to receive compensation from the seller (through the MLS offer of compensation) must disclose this to:
AOnly the Division of Real Estate
BThe buyer-client, as this compensation arrangement is material to the agency relationship✓ Correct
CNo one, as MLS compensation is standard
DThe title company closing the transaction
Explanation
A buyer's agent receiving compensation from the seller creates a potential conflict of interest that must be disclosed to the buyer-client. Post-2024 NAR settlement changes have increased emphasis on buyer representation agreements specifying buyer's agent compensation upfront.
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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.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
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