Multiple Choice Question: You are a buyer’s agent with an exclusive C.A.R. Buyer Representation and Broker Compensation Agreement (BRBC). Which of the following statements is true? Pick the best answer:

A. You should give the buyer a list of properties to establish Broker Involvement.
B. For a BRBC cancellation, you should give the buyer a list of properties within 5 days after receiving a notice of cancellation from the buyer.
C. For a BRBC expiration, you should give the buyer a list of properties before the expiration of the BRBC.
D. All of the above. 

Answer: Guess what! Some of the confusion with the BRBC stems from the fact that there are actually 2 different types of “lists of properties.” The first list, let’s call it List Type A, is a list of properties, like an MLS feed, that agents often send over to their buyer-clients to show them what’s available for sale. List Type B, on the other hand, is a list of properties with Broker Involvement that agents send to their buyer-clients upon cancellation or expiration of the BRBC. To create a List Type B, you can use C.A.R.’s standard-form Notice of Broker Involved Properties (NBIP).

Answer A is wrong. List Type A is not given to a buyer to establish Broker Involvement. In fact, the mere sending of a list of potential properties to a buyer, does not, by itself, establish “Broker Involvement” (see paragraph 4B(4) of the BRBC). To establish “Broker Involvement,” you must do more than just give the buyer a list of properties. You have to show the property to the buyer, give the buyer your agent analysis of the property, submit an offer on the buyer’s behalf, or perform other services as a buyer’s agent.

Aside from List Type A, the NBIP or List Type B is also not used to establish Broker Involvement. You establish Broker Involvement by your actions, as discussed above. The NBIP (List Type B) merely identifies the Broker Involved properties for which you want to protect your entitlement to compensation upon cancellation or expiration of your BRBC.

Answer B is wrong. The timing is wrong. If a buyer gives you, for example, a 30-day notice of cancellation on March 1, 2025, the effective date of cancellation will be March 31, 2025. In that situation, you may want to protect your entitlement to compensation for Broker Involved properties for the remainder of your Representation Period and any Continuation Period. To do that, you must give the buyer your NBIP (List Type B) within 5 days after the effective date of cancellation of March 31, 2025 (see paragraph 5B of the BRBC). You should give the buyer your NBIP within 5 days after the effective date of cancellation, and not within 5 days after the notice of cancellation.

Answer C is a true statement, and the correct answer (and Answer D is wrong). When there is no cancellation, but the Representation Period of your BRBC expires, you may want to protect your entitlement to compensation for Broker Involved properties during any Continuation Period. To do that, you must give the buyer your NBIP (List Type B) before the expiration of your BRBC (see paragraph 4C(2)).

-Thank You to Nicki Marcellino (La Jolla Manager) for suggesting this week’s legal tip!

Copyright© 2025 Shared Success Center, LLC (serving HomeServices of America companies). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of February 24, 2025. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. Written by Stella Ling, Esq.