Compensation is negotiable: buyer-paid fee, seller/listing-side offer, or both (credit excess)
Before you read
Test yourself first: 5 questions
Question 1 of 5
A buyer shown homes by the seller's agent, with no representation agreement, is the agent's:
Answer: B. Without a representation agreement the buyer is a customer (owed honesty and fairness), not a client (owed fiduciary duties).
Question 2 of 5
A signed buyer-representation agreement creates:
Answer: A. A buyer-rep agreement makes the buyer a client, so the agent owes them full fiduciary duties.
Question 3 of 5
A buyer-representation (buyer-agency) agreement creates fiduciary duties owed primarily to:
Answer: B. A buyer-representation agreement makes the buyer the client, so the brokerage owes the buyer full fiduciary duties.
Question 4 of 5
An exclusive buyer-representation agreement obligates the buyer to:
Answer: B. An exclusive buyer-agency agreement commits the buyer to work only with that brokerage during the term, much like an exclusive listing on the seller side.
Question 5 of 5
A major risk of subagency for the seller is that the seller can become liable for:
Answer: B. Because the subagent acts on the seller's behalf, the seller (principal) may be held vicariously liable for the subagent's misrepresentations, which is a key reason subagency declined in favor of buyer agency.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Buyer-rep agreement = employment contract with the BUYER; fiduciary duties flow to buyer
- Compensation is negotiable: buyer-paid fee, seller/listing-side offer, or both (credit excess)
- Written agreements before touring are now standard practice nationwide
- Procuring cause: the broker whose efforts actually produced the buyer
- MLS compensation offers are no longer guaranteed — put fees in writing
Buyer Representation & Getting Paid: FAQs
Is Buyer Representation & Getting Paid on the real estate exam?
Yes. Agency & Fiduciary Duties is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
