3. A licensee has an exclusive buyer agency agreement in place. The buyer signs a contract to purchase through a different licensee at an open house. Because of the buyer's agency agreement, which of the following is true?
Answer: C
The original buyer's agent is owed a commission according to the agreement.
Due to the exclusive buyer agency agreement that the buyer has signed, the original buyer's agent is entitled to a commission irrespective of the buyer's decision to purchase through a different licensee at an open house.
A) The seller/listing broker owe the buyer's agent a commission.
This option is incorrect because the obligation for the commission typically lies with the buyer, not the seller or listing broker, unless explicitly stated in the agreement. The seller's broker generally pays commissions to the listing agent and, if applicable, to the buyer's agent as per the terms of the listing agreement.
B) The seller/listing broker owe the listing agent and the buyer's agent a shared commission.
This statement is misleading. While the seller may offer a commission to the buyer's agent, it does not imply a shared commission arrangement unless specified in the listing agreement. The buyer's agent's commission is primarily governed by the agreement with the buyer, not by the seller.
C) The original buyer's agent is owed a commission according to the agreement.
This option is correct because the exclusive buyer agency agreement binds the buyer to compensate their agent, affirming that the original buyer's agent is entitled to a commission regardless of the buyer's subsequent actions at an open house.
D) The original buyer's agent is entitled to no commission.
This option is incorrect as it contradicts the terms of the exclusive buyer agency agreement. Since the buyer has committed to working with the original buyer's agent, that agent is entitled to a commission regardless of the purchase method chosen by the buyer.
Conclusion
The correct answer is C, as the exclusive buyer agency agreement obligates the buyer to pay their agent a commission, emphasizing the contract's binding nature. All other options fail to recognize the implications of the exclusive agreement and misinterpret the commission obligations between the involved parties.