PSI New Jersey Real Estate State Practice Exam

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What happens if the buyer refuses to sign an exclusive buyer representation agreement?

The agent cannot represent them
The agreement becomes void
The agent may still assist them informally
The agent can represent the seller instead

The correct answer is: The agent cannot represent them

If a buyer refuses to sign an exclusive buyer representation agreement, the agent cannot represent them. This agreement is a formal arrangement that establishes a contractual relationship between the buyer and the agent, outlining the responsibilities and expectations on both sides. Without this signed agreement, the agent lacks the legal authority to act on behalf of the buyer in transactions. Representation generally involves fiduciary duties, such as loyalty and confidentiality, which cannot be properly enacted without a formal agreement in place. This ensures that the buyer's interests are prioritized and that the agent is fully committed to their representation. The refusal to sign indicates that the buyer is not ready to enter into this binding agreement, thus preventing the agent from legally representing them in a buyer agency capacity.