Question 63

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

In this scenario, the buyer-broker acts as a referring broker when they locate a property listed with another broker and facilitate the buyer's offer. This means the buyer-broker is working in coordination with the listing broker to assist the buyer without establishing a direct agency relationship with the seller.

A) the buyer-broker is acting as a:

This option is incomplete and does not provide any specific context or information regarding the buyer-broker’s role. Therefore, it cannot be deemed correct as it fails to clarify the nature of the buyer-broker's actions in this transaction.

B) Subagent of the listing broker

While a subagent acts on behalf of the listing broker, this relationship would imply that the buyer-broker owes fiduciary duties to the seller. In this case, the buyer-broker is representing the buyer, not the seller, which makes this option incorrect.

C) Referring broker with the listing broker

This option accurately describes the relationship in this scenario. The buyer-broker acts as a referring broker, facilitating the buyer's offer while working alongside the listing broker. This role does not create fiduciary obligations to the seller, aligning perfectly with the situation described.

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

Although this statement is partially accurate, it does not fully capture the buyer-broker's relationship with the listing broker. It emphasizes the buyer's representation but neglects the fact that the buyer-broker is specifically coordinating with the listing broker as a referring broker.

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

This option is entirely incorrect as it contradicts the scenario where the buyer-broker is representing the buyer. A representative of the seller would have a conflicting duty to the buyer, which does not apply here.

Conclusion

The correct answer is C because the buyer-broker is functioning as a referring broker in collaboration with the listing broker, facilitating the buyer's offer without a fiduciary obligation to the seller. All other options either misrepresent the buyer-broker's role or fail to adequately describe the nature of the agency relationships involved in this transaction.