A licensee has an exclusive buyer agency agreement in place. The buyer signs a contract to purchase through a different licensee at an open house. Because of the buyer's agency agreement, which of the following is true?
The original buyer's agent is owed a commission according to the agreement.
An exclusive buyer agency agreement binds the buyer to compensate their designated agent, regardless of any purchase made through another licensee. Therefore, the buyer's agent is entitled to a commission as stipulated in the agreement, even if the transaction occurs with a different agent.
This statement is incorrect because the seller and listing broker are typically obligated to pay the commission to the listing agent, not directly to the buyer's agent. The buyer's agent is compensated through the buyer's exclusive agreement, which does not involve the seller's obligations.
This option is misleading as commissions are usually specified in the listing agreement between the seller and the listing agent. The buyer's agent does not automatically receive a shared commission from the seller; rather, the payment to the buyer's agent comes from the buyer's agency agreement.
This statement accurately reflects the terms of the exclusive buyer agency agreement, which ensures that the buyer's agent is entitled to a commission for their services, regardless of who the buyer chooses to transact with. The agreement remains binding even if the buyer engages another licensee for the purchase.
This option is incorrect because it disregards the existence of the exclusive buyer agency agreement. Under the agreement, the buyer's agent has a right to a commission as they have provided representation and services to the buyer throughout the process.
In real estate transactions, an exclusive buyer agency agreement protects the rights of the buyer's agent to receive a commission even if the buyer purchases a property through a different licensee. Thus, the buyer's agent is owed compensation as specified in the agreement, ensuring their efforts in representing the buyer are recognized and rewarded.
Related Questions
View allWhich of the following is among the typical responsibilities of a resi...
A property is listed for $125,000. It was appraised at $128,500 by the...
A buyer agent has two clients who want to see the same property. Under...
Which of the following is considered a material fact?
The two clauses in a mortgage which allow the lender to proceed with a...
Related Quizzes
View allAlabama Property and Casualty License Practice Exam
California Real Estate Practice Final Exam Answers
PSI National Real Estate License Exam Prep
Colorado State Real Estate License Exam
Illinois Real Estate Exam Prep Online
Free Illinois Real Estate Exam Practice Test
Illinois Real Estate Broker Exam Prep
Illinois Real Estate Exam Study Guide PDF
Illinois National Real Estate Exam
Illinois Real Estate State Exam Questions
- ✓ 500+ Practice Questions
- ✓ Detailed Explanations
- ✓ Progress Analytics
- ✓ Exam Simulations