California Real Estate Broker ExaminationContractsMedium
A real estate agent is preparing an Exclusive Right-to-Represent Buyer Agreement. The buyer is concerned about being tied to one agent and asks if they can still look at properties independently. What is the agent's best response regarding this type of agreement?
- AUnder this agreement, you must work exclusively with me for all property searches and purchases within the specified term and area.
- BYou can work with other agents, but you will owe me a commission if you purchase a property through them.
- CYou are free to look at properties independently, but I will still be paid if you buy one I showed you.
- DThis agreement only guarantees my commission if I am the procuring cause of the sale.
Show answer & explanationAnswer & explanation
Correct answer: A. Under this agreement, you must work exclusively with me for all property searches and purchases within the specified term and area.
An Exclusive Right-to-Represent Buyer Agreement, similar to an Exclusive Right-to-Sell Listing, obligates the buyer to work solely with the named agent. The agent earns a commission if the buyer purchases any property within the agreement's terms, regardless of who finds it.
Why the other options are wrong
- B. This statement is contradictory and generally false; if you owe one agent, you can't simply buy through another without potential dual commission liability.
- C. This describes an exclusive agency buyer agreement, not an exclusive right-to-represent.
- D. This describes an open buyer agreement or non-exclusive agreement, focusing on procuring cause.
Exclusive Right-to-Represent Buyer Agreement
A contract where a buyer agrees to work exclusively with a single real estate agent, and that agent is entitled to a commission if the buyer purchases a property within the agreement's terms, regardless of who found the property.
- Buyer works exclusively with one agent
- Agent earns commission regardless of procuring cause
- Creates a strong fiduciary relationship
Memory trick: Exclusive Right-to-Represent: 'You're MY buyer, no matter who finds the home!'