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Which of the following is a duty of a buyer that is commonly established by a buyer-broker agreement?

A) Performing a market analysis.
B) Paying the buyer's agent's commission.
C) Disclosing any known defects in the property.
D) Conducting inspections on the property.

User Azalea
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1 Answer

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Final answer:

The duty commonly established by a buyer-broker agreement for the buyer is to pay the buyer's agent's commission. Imperfect information in the market can make it difficult to agree on a price, but sellers can use warranties, inspections, and guarantees to enhance buyer confidence.

Step-by-step explanation:

The correct answer to the question of which duty a buyer has in a buyer-broker agreement is B) Paying the buyer's agent's commission. It is the responsibility of the buyer to compensate their agent for the services provided during the home buying process. This fee is often included in the buyer-broker agreement and may be a percentage of the purchase price or a flat fee.

Regarding the difficulty in agreeing on a price with imperfect information, it arises because imperfect information leads to uncertainty in the market, meaning buyers and sellers might not agree on the value of a property. Sellers can reassure possible buyers by providing warranties, third-party inspections, or other guarantees to reduce the risk linked to imperfect information.

User Alexey Kulikov
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