Maine Real Estate License Practice Exam

What does a buyer agency agreement typically establish?

1. The seller's commission payment

2. The compensation between the buyer's and seller's agent

3. The expiration date of the agency's authority

4. The responsibilities of the buyer

The correct answer is: The expiration date of the agency's authority

A buyer agency agreement typically establishes the responsibilities of the buyer. This type of agreement sets the framework for the relationship between the buyer and their agent, outlining the agent's obligations to represent the buyer's interests in the real estate transaction. It ensures that the agent will act in the buyer's best interest, provide guidance throughout the process, and facilitate the buyer's real estate needs. While the agreement may indirectly address the expiration date of the agency's authority, its primary function is to clarify and enforce the buyer's responsibilities, such as how they should communicate with the agent, the financial aspects of making offers, and ensuring compliance with the terms of the agreement. Understanding the responsibilities laid out in the agreement helps buyers know what is expected of them and what they can expect in return from their agent, which is crucial for a smooth transaction.