Difficulty: Hard

Average Score: 40%

A 3-month exclusive buyer-agency agreement means that during its term the broker

Rationale

A 3-month exclusive buyer-agency agreement means that during its term the broker is entitled to compensation even if the buyer purchases a property they locate.

This type of agreement establishes a fiduciary relationship where the broker represents the buyer's interests exclusively, ensuring that the broker is compensated for their efforts regardless of how the buyer finds a property.

A (must be compensated by the seller) YOUR ANSWER

This choice is incorrect because an exclusive buyer-agency agreement typically stipulates that the buyer is responsible for compensating the broker, not the seller. The relationship created by this agreement focuses on representing the buyer rather than the seller, which is fundamental to the buyer's agency.

B (is only due compensation if the buyer purchases one of the broker’s listings) YOUR ANSWER

This option is misleading as it suggests that the broker’s compensation is contingent solely on transactions involving their own listings. An exclusive buyer-agency agreement ensures that the broker is entitled to compensation for any purchase made by the buyer, not just for their own listings.

D (may not show property to other buyers until the buyer decides) YOUR ANSWER

This statement is incorrect because the exclusive buyer-agency agreement pertains specifically to the relationship between the broker and the buyer. The broker can still show properties to other buyers, as their obligation is towards the buyer who has signed the agreement, but it does not limit their ability to work with other clients.

Conclusion

In summary, a 3-month exclusive buyer-agency agreement guarantees that the broker will receive compensation regardless of how the buyer finds a property. It protects the buyer’s interests while ensuring that the broker’s efforts are rewarded, even if the buyer independently locates a property. This arrangement is pivotal in real estate transactions, reinforcing the broker's commitment to the buyer's success.

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