Buyer brokerage agreement Flashcards
(6 cards)
1
Q
What is a buyer brokerage agreement?
A
An employment contract with the buyer
2
Q
What role does the broker have in a buyer brokerage agreement?
A
Broker is employed as the buyer’s transaction broker
3
Q
Where is the broker’s compensation specified?
A
In either the listing or the buyer brokerage agreement
4
Q
In what two forms can the broker compensation be?
A
- Commission
- Brokerage fee
5
Q
What are the possible structures for broker compensation?
A
- Percentage of the total sales price
- Flat fee
- Hourly rate
6
Q
What must happen for the broker to receive the commission?
A
- The broker found the buyer
- The broker effected the sale (buyer closes on property)
- The buyer was the procuring cause (started the chain of events that led to the sale)
