Randall55-
An agent can work with a buyer but they do not represent them unless they have a signed contract with them. If there is no contract then the agent is representing the Seller as a sub-agent of the Seller's agent. There are all kinds of laws about who can do and say what in these agency situations centered around fiduciary responsibility and confidentiality.
Legally, a buyer who does not have a contract with an agent is a prospect or a customer whereas a buyer with a contract is a "client". That contract between the Buyer and his agent should stipulate how he/she gets paid and by whom. It could be the buyer, the seller or both paying the fees.
One of the problems with the lawsuit is that they are basically pushing the business to use Buyer Broker agreements. If that becomes a reality and the Buyer is responsible for the buying side fees there is no provision in the financing industry to cover that. Fannie Mae, Freddie Mac, VA and all of the government lending operations do not allow that commission to be financed and they usually set the tone for what is the norm.
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