Question

Which is TRUE of licensees representing client buyers?

A)
They owe certain statutory duties to sellers.
B)
They can be regarded as cooperating agents and therefore the subagents of the seller.
C)
They cannot be compensated by sellers.
D)
They do not need written representation agreements to qualify for compensation

Answer 1

Licensees representing client buyers typically act as the buyer's agent and owe duties to their clients. They can be compensated by the seller and generally require written representation agreements.

Step-by-step explanation:

The question pertains to the duties and relationships of licensees representing client buyers in the real estate market. Specifically, option B) They can be regarded as cooperating agents and therefore the subagents of the seller is FALSE. In most real estate transactions, the licensee representing the buyer acts as the buyer's agent, owing duties of trust and loyalty to the buyer, not the seller. Contrary to being considered subagents of the seller, buyer's agents have responsibilities to their client to negotiate the best terms and protect the buyer's interests.

Regarding the other options, a licensee representing a buyer:

• Might owe certain statutory duties to sellers, such as honesty and fair dealing, but their primary obligation is to the buyer.
• Can indeed be compensated by sellers, which is often the case when the seller's agent shares a portion of the listing commission with the buyer's agent.
• Typically do need written representation agreements to explicitly define their relationship with the buyers and the details of their compensation.