A Queensland agent acting under an open listing agreement sells a property. Two other agents also claim to have introduced the buyer. Under Queensland law, commission is payable to:
Correct Answer
D) The agent who was the effective cause of the sale
Under an open listing, only the agent who is the effective cause of the sale is entitled to commission. The effective cause test considers which agent's efforts directly led to the buyer entering into the contract.
Why This Is the Correct Answer
The Property Occupations Act 2014 (Qld) defines an open listing as one where the appointed agent is entitled to commission only if they are the effective cause of the sale. The agent whose efforts actually brought about the sale earns the commission.
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A licensed real estate agent in Queensland wishes to act for both the buyer and seller in the same transaction. Under the Property Occupations Act 2014, the agent must:
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