A buyer in a common law agency jurisdiction who signs agreements with multiple brokers is liable for how many commissions?

A buyer in a common law agency jurisdiction who signs agreements with multiple brokers is liable for how many commissions?

• A. One commission to the broker who locates the property
• B. Multiple commissions to every broker that showed him the property
• C. One commission to the broker through whom he places his first offer
• D. Multiple commissions to every broker with whom he signed an agreement

Answer: (C)

In a common law agency jurisdiction, when a buyer signs agreements with multiple brokers, the key factor determining the number of commissions owed relates to the concept of agency and the buyer's obligations under those agreements. The correct answer emphasizes that the buyer is liable for one commission to the broker through whom they place their first offer. When a buyer decides to make an offer on a property, the broker representing that buyer at the time the offer is made typically earns the commission. This is grounded in the principle that once a buyer engages a broker and begins the transaction process, that broker takes on the fiduciary responsibility and earns the right to compensation based on their role in facilitating the sale. Other brokers may have presented properties or provided assistance, but unless there is a specific agreement stipulating otherwise, the commission generally goes to the broker who has a contractual relationship with the buyer at the time of the offer. This principle is reinforced by the expectation that buyers should clarify their intentions when working with multiple agents, as it can become legally complex if not managed properly. Thus, while multiple brokers may be involved in the search process, the commission structure typically hinges on where the official transaction attempt begins – which is marked by the first offer made through a broker.

In a common law agency jurisdiction, when a buyer signs agreements with multiple brokers, the key factor determining the number of commissions owed relates to the concept of agency and the buyer's obligations under those agreements. The correct answer emphasizes that the buyer is liable for one commission to the broker through whom they place their first offer.

When a buyer decides to make an offer on a property, the broker representing that buyer at the time the offer is made typically earns the commission. This is grounded in the principle that once a buyer engages a broker and begins the transaction process, that broker takes on the fiduciary responsibility and earns the right to compensation based on their role in facilitating the sale.

Other brokers may have presented properties or provided assistance, but unless there is a specific agreement stipulating otherwise, the commission generally goes to the broker who has a contractual relationship with the buyer at the time of the offer. This principle is reinforced by the expectation that buyers should clarify their intentions when working with multiple agents, as it can become legally complex if not managed properly. Thus, while multiple brokers may be involved in the search process, the commission structure typically hinges on where the official transaction attempt begins – which is marked by the first offer made through a broker.