A fee agreement is used when:

• A. To secure payment of the commission from the seller without obligating fiduciary duties.
• B. To obligate the buyer to pay the seller's agent.
• C. To create an agency relationship between the seller and the buyer's agent.
• D. To waive any commission payment.

Answer: (A)

A fee agreement is used to secure compensation for the broker without creating an ongoing agency relationship. It sets the arrangement so the seller (often the party paying the commission) agrees to pay a specified fee for the broker’s services, while the broker’s duties to the client are limited to those defined in the agreement and do not automatically amount to fiduciary duties in a broader sense. This clarifies who pays and keeps the broker’s obligations from expanding into a full fiduciary relationship with the buyer or seller.

In practice, this means the broker can earn a fee from the seller for services rendered, even if a full agency relationship with either party isn’t established or isn’t intended to be perpetual. The other options describe scenarios that imply a broader agency relationship or a different payment arrangement, which a fee agreement is not designed to create.