An agent working under a sole agency agreement learns that their principal is simultaneously negotiating directly with a buyer for a private sale. The agent has not yet introduced this particular buyer. Which statement best describes the legal position?
Correct Answer
D) The vendor may sell privately to that buyer without owing the agent commission
Under a sole agency agreement, the principal retains the right to sell the property privately without paying commission, provided the buyer was not introduced by the agent. This differs from an exclusive agency where the agent would be entitled to commission regardless of who effects the sale.
Why This Is the Correct Answer
A sole agency appoints one agent but leaves the vendor free to sell privately. If the agent did not introduce the buyer, the vendor owes no commission. Terminology differs between states, so check the agreement's definitions.
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