Florida Real Estate Sales Associate Examination Content OutlineReal Estate Brokerage Activities and ProceduresMedium
A buyer enters into an exclusive buyer brokerage agreement with a real estate broker. After several weeks, the buyer finds a property on their own and directly negotiates a purchase with the seller, without any assistance from the broker. Under what circumstances would the broker still be entitled to compensation?
- AIf the agreement was an exclusive right-to-represent buyer brokerage agreement.
- BOnly if the broker had shown the buyer that specific property previously.
- CIf the agreement was an exclusive agency buyer brokerage agreement.
- DThe broker is never entitled to compensation if the buyer finds the property themselves.
Show answer & explanationAnswer & explanation
Correct answer: A. If the agreement was an exclusive right-to-represent buyer brokerage agreement.
An exclusive right-to-represent buyer brokerage agreement guarantees the broker compensation if the buyer purchases any property during the agreement term, regardless of who found the property. An exclusive agency agreement would not guarantee compensation if the buyer found the property themselves.
Why the other options are wrong
- B. The terms of the agreement dictate compensation, not necessarily previous showings.
- C. In an exclusive agency agreement, the broker is not compensated if the buyer finds the property independently.
- D. This is incorrect; an exclusive right-to-represent agreement ensures compensation.
Exclusive Right-to-Represent
An exclusive right-to-represent agreement entitles the broker to a commission if the client buys or sells a property during the agreement term, regardless of who finds the property.
- Strongest form of agency for the broker.
- Guarantees commission if transaction occurs.
- Applies to both buyer and seller agreements.
Memory trick: Right to Represent: 'R'egardless of who 'R'eally 'R'eaches the deal.