Under what condition might a broker working with a buyer receive compensation from a listing broker?

Study for the Georgia MLS Exam. Prepare with comprehensive multiple choice questions, each with hints and explanations. Excel on your exam!

A broker working with a buyer can receive compensation from a listing broker if there is a cooperating agreement between the brokers. Such an agreement outlines terms for sharing commissions and ensures that all parties are aware of the compensation structure. In real estate transactions, it is common for listing brokers to offer compensation to cooperating brokers as an incentive to bring buyers to the property. This cooperative relationship is often formalized in the terms set forth in the Multiple Listing Service (MLS), ensuring clarity and mutual benefit in the transaction process.

The presence of a cooperating agreement is essential because it defines how commissions will be handled and encourages collaboration between different brokers involved in the transaction. Without this agreement, there may not be a clear understanding of payment responsibilities, potentially leading to disputes or misunderstandings regarding compensation.

Other conditions listed, such as a buyer agreeing to pay for it, a seller providing a bonus, or a buyer purchasing the property, do not inherently establish a framework for compensation from the listing broker to the buyer's broker. Each of those scenarios may involve different arrangements but does not ensure the systematic cooperation necessary for commission sharing in most traditional real estate transactions.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy