New Jersey Real Estate Exam Practice Question
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?
Correct Answer: C
Rationale: To protect the buyer from owing multiple commissions while hiring real estate licensees in different cities, a nonexclusive buyer-agency agreement is ideal. This type of agreement allows the buyer to work with multiple agents without the obligation to pay commissions to all of them, as long as the buyer doesn't enter into an exclusive arrangement with any single agent.
Option A, exclusive agency representation, could lead to owing a commission to one agent if they find a property, even if others are involved. Option B, nonexclusive right-to-lease, pertains specifically to leasing rather than purchasing, making it irrelevant. Option D, exclusive right to sell, obligates the buyer to pay a commission to one agent, which contradicts the goal of avoiding multiple commissions.
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