5. 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.
Given that the buyer has an exclusive buyer agency agreement in place, the original buyer's agent is entitled to a commission when the buyer purchases a property, regardless of which licensee facilitates the sale.
A) The seller/listing broker owe the buyer's agent a commission.
This option is incorrect because the seller or listing broker typically pays the commission, but they are not obligated to pay the buyer's agent directly unless stipulated in the buyer's agency agreement. The agreement primarily binds the buyer to compensate their agent.
B) The seller/listing broker owe the listing agent and the buyer's agent a shared commission.
This statement is inaccurate as the seller or listing broker does not owe a shared commission to both agents. Commissions are negotiated, and the buyer's agency agreement specifically establishes the original buyer's agent's entitlement, which does not guarantee shared compensation.
C) The original buyer's agent is owed a commission according to the agreement.
This option is correct because the exclusive buyer agency agreement creates a contractual obligation for the buyer to compensate their agent for services rendered, irrespective of which licensee completes the transaction. Therefore, the original buyer's agent is entitled to a commission.
D) The original buyer's agent is entitled to no commission.
This option is false as it contradicts the terms of the exclusive buyer agency agreement. Since the buyer is bound by this contract, they are required to ensure their agent receives a commission for their representation in the purchase, regardless of the involvement of another licensee.
Conclusion
The correct answer clearly establishes the rights of the original buyer's agent under the exclusive agency agreement, which guarantees them a commission upon the buyer's successful purchase of a property. All other options fail to recognize the binding nature of the agreement, thus misrepresenting the obligations of the buyer and the seller in this context.