Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?  

Buyers don't always like it but now that it's a hard requirement for everyone, they have no choice. 

These costs for most of the individuals are considered personal in nature (unless you have a RE portfolio that is run like a business; see below).

Remember when land buyers pick a target, they have TONS of work to do getting that property from dirt to payday, so they know their purchase choices, and they have a war chest usually stacked up ready to go.

For this reason, I teach people to set policies for renting to unrelated individuals.

Most foreign buyers are high net worth individuals who want to park their money there in a safe haven and they don't need BP.No restrictions apply to American buyers in the countries they'd generally want to buy, including those mentioned by Federico and many other popular countries.When it comes to Spain specifically, some more conservative banks will ask you for a 40% downpayment (that would be the maximum) but that isn't the rule.

The Exclusive Right to Represent makes sense for prospective individual homebuyers, but for real estate investors, it seems unfair and limiting.

Individuals are purchasing these properties, rehabbing them, and raising rents.

I focus heavily on the sell side and on the buy side only work with high net worth individuals so the newbie wanting a 400k multifamily with an FHA loan probably isn't for me. 

Best neighborhood and best assets are subjective and largely based on the individuals capabilities (balance sheet, skill set, time etc.)