What effect does a buyer's agency agreement have on commission?

A buyer's agency agreement establishes a formal relationship between the buyer and the agent, whereby the agent agrees to represent the buyer's interests in the transaction. Typically, this agreement outlines the responsibilities of the agent and specifies how the agent will be compensated, often leading to the seller being responsible for paying the commission to the buyer's agent.

In many real estate transactions, the listing agreement that the seller enters into with their agent includes provisions for commission that typically account for both the seller’s agent and the buyer’s agent. Therefore, when a buyer's agency agreement is in place, it usually reinforces this practice, ensuring that the seller’s agent pays a commission to the buyer's agent at closing.

While other options touch on aspects of commission or obligations, they do not accurately represent the standard effect of a buyer's agency agreement on commission. It does not inherently increase the fees that the agent can charge, nor does it release the buyer from financial obligations concerning the agent’s services. Additionally, it does not prohibit the seller's agent from receiving a commission; rather, it simply outlines how commissions are typically allocated within the context of the transaction. Thus, the assertion about the seller's obligation to pay a commission stands as the most accurate description of the impact of the buyer