In the context of a buyer’s agency agreement, who is typically responsible for paying the commission?

Prepare for the TREC Law of Agency Exam. Study with multiple-choice questions and detailed explanations. Get confident for your test!

In a buyer’s agency agreement, the seller is typically responsible for paying the commission, as outlined in the listing agreement. This arrangement is common in real estate transactions, where the seller agrees to pay a commission to the listing agent, which in turn is often shared with the buyer's agent.

The buyer's agent enters into an agreement with the buyer to represent their interests, but the financial obligation for the commission usually falls on the seller. This setup encourages collaboration between the buyer's agent and the seller’s agent, as both are incentivized to complete the transaction successfully. It also simplifies the process for buyers, who may not be in a position to pay the agent directly.

Furthermore, in most typical real estate transactions, this is how the commission structure is designed, aligning with industry standards and practices.

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