Question 26

A buyer-broker is acting as a referring broker with the listing broker.

In this scenario, the buyer-broker is facilitating the transaction by presenting the buyer's offer to the listing broker, thus acting as a referring broker.

A) the buyer-broker is acting as a:

This option is incomplete and does not provide a clear answer. It fails to specify the role of the buyer-broker in relation to the buyer and the listing broker.

B) Subagent of the listing broker

This option is incorrect because a subagent represents the interests of the listing broker and not the buyer. In this case, the buyer-broker is working on behalf of the buyer and does not act under the authority of the listing broker.

C) Referring broker with the listing broker

This option is correct as it accurately describes the role of the buyer-broker in this context. The buyer-broker is not representing the seller or the listing broker but is instead facilitating the transaction between the buyer and the listing broker.

D) Representative of the buyer and owes no fiduciary obligations to the seller

While it is true that the buyer-broker represents the buyer, this option does not fully capture the nature of the relationship with the listing broker. The buyer-broker is also acting as a referring broker in this specific transaction.

E) Representative of the seller and owes no fiduciary obligations to the buyer

This option is incorrect as it entirely misrepresents the role of the buyer-broker. The buyer-broker does not represent the seller, and therefore cannot owe any fiduciary obligations to the buyer in this context.

Conclusion

The correct answer, option C, definitively identifies the role of the buyer-broker as a referring broker in the transaction. This clarifies the relationship dynamics between the buyer, the buyer-broker, and the listing broker. All other options fail to accurately depict the buyer-broker's role in this scenario, leading to misunderstandings of fiduciary obligations and representation.