87. A buyer is looking in several different cities for land to purchase for a shopping center. The buyer has decided to hire several real estate licensees, each representing the buyer in that licensee's city. Which type of agreement would protect the buyer from owing multiple commissions?
Answer: C
Nonexclusive buyer-agency agreements would protect the buyer from owing multiple commissions.
A nonexclusive buyer-agency agreement allows the buyer to work with multiple agents without the obligation to pay commissions to each agent unless a property is purchased through that agent. This arrangement provides flexibility and ensures that the buyer is not financially liable for multiple commissions across different cities.
A) exclusive agency representation
Exclusive agency representation would not protect the buyer from owing multiple commissions, as it typically involves a single agent who has the right to earn a commission if the buyer purchases through them. If the buyer were to purchase from another agent, they could still be liable for commission to the first agent.
B) nonexclusive right-to-lease
Nonexclusive right-to-lease agreements focus specifically on leasing properties rather than purchasing them. Therefore, this option does not apply to the buyer's situation of looking to purchase land for a shopping center and would not provide protection against multiple commissions.
C) nonexclusive buyer-agency
Nonexclusive buyer-agency agreements are the appropriate choice because they allow the buyer to engage multiple agents without the risk of incurring multiple commission obligations. This flexibility is essential for a buyer exploring land options across various cities.
D) exclusive right to sell
Exclusive right to sell agreements are designed for sellers and grant one agent the sole right to market and sell a property. This option would not be relevant to the buyer seeking land and would not prevent liabilities for paying multiple commissions to different agents.
Conclusion
The nonexclusive buyer-agency agreement is the only option that effectively protects the buyer from owing multiple commissions while allowing them to work with various agents in different cities. Other options either do not apply to the buyer's situation or would result in potential financial liabilities, making option C the clear choice.