Alabama Real Estate Practice Exam

What distinguishes exclusive buyer agency from other types of buyer agency?

1. The broker can represent multiple buyers at the same time

2. The broker gets paid even if the buyer finds the property without the broker's help

3. The buyer has to pay the broker, regardless of purchase

4. The broker does not have to look out for the buyer’s best interests

The correct answer is: The broker gets paid even if the buyer finds the property without the broker's help

The defining characteristic of exclusive buyer agency is that the broker represents only one buyer at a time and has a fiduciary duty to that client. This means the broker will act solely in the best interests of the buyer throughout the transaction. The option stating that the broker gets paid even if the buyer finds the property without the broker's help is accurate because in an exclusive buyer agency agreement, the buyer typically agrees to compensate the broker, ensuring the broker's payment regardless of who locates the property. This arrangement emphasizes that the buyer is committed to working exclusively with that broker, creating a clear and committed relationship. In contrast, in other types of buyer agency arrangements, a broker might work with multiple buyers simultaneously or may not receive compensation unless they are involved in the transaction. Additionally, the compensation structures can vary, making the distinction significant. A true exclusive buyer agency solidifies the expectation of compensation to the broker while prioritizing the interests of the buyer.