California Real Estate Practice Exam

How is buyer broker compensation typically handled?

1. The fee owed by the buyer is independent of any seller's fee.

2. The buyer always pays the full fee directly.

3. The fee paid by the seller is credited against the fee owed by the buyer.

4. There is typically no fee for buyer broker compensation.

The correct answer is: The fee paid by the seller is credited against the fee owed by the buyer.

Buyer broker compensation is typically handled by crediting the fee paid by the seller against the fee owed by the buyer. This means that while the buyer may still have to pay a fee for the services provided by their broker, the seller's payment will cover some or all of this fee. Option A is incorrect because the buyer's fee is not independent of the seller's fee. Option B is incorrect because the buyer does not always pay the full fee directly, as discussed above. Option D is incorrect because there is typically a fee for buyer broker compensation, which is covered in part or in full by the seller's payment.