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:

Q: What is the correct answer to: 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:

The correct answer is The agent who was the effective cause of the sale. Under an open listing, commission is payable only to the agent who was the 'effective cause' of the sale. This legal test examines which agent's efforts directly and substantially led to the buyer entering into the contract of sale, considering the chain of causation from introduction to completion.

Q: What background knowledge is needed for this Agency Practice question?

The effective cause doctrine comes from agency law and is applied in Queensland commission disputes. Factors considered include who introduced the buyer, the continuity of negotiations, and whether the agent's efforts were a substantial cause of the buyer's decision to purchase.

Q: What is a good way to remember the answer to this Agency Practice question?

Only the agent who EFFECTIVELY CAUSED the sale earns commission — the one whose efforts directly led to the buyer signing. In open listing disputes, ask: whose efforts actually caused this sale? That agent gets the commission.

Q: What exam tip applies to this Agency Practice question?

For open listing commission questions, the answer is always the agent who was the 'effective cause' of the sale.

Q: How does this Agency Practice concept apply in Australian real estate practice?

Three agents have open listings on a property. Agent A introduced the buyer, Agent B conducted inspections, but Agent C negotiated the final deal and got the contract signed. A court would examine the full chain to determine who was the effective cause.

Question

Agency PracticeQLDHARD

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:

Answer Options

A

All three agents equally

B

The agent who was the effective cause of the sale

C

The agent who was appointed first

D

No agent, because open listings prevent commission claims