A listing agreement contains a clause stating 'commission is earned when a ready, willing, and able buyer is procured.' The seller refuses to complete the sale after such a buyer is found, claiming they changed their mind. What are the agent's rights regarding commission?
Correct Answer
B) Full commission is owed because the agent fulfilled their contractual obligation
When a listing agreement specifies that commission is earned upon procuring a ready, willing, and able buyer, the agent's entitlement to commission is not dependent on completion of the sale. The agent has fulfilled their contractual obligation regardless of the seller's subsequent refusal to sell.
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Previous Question
A commercial property purchase agreement includes a condition for environmental site assessment. The buyer's environmental consultant discovers soil contamination but the buyer decides to proceed anyway. To complete the purchase, the buyer must:
Next Question
A seller's listing agreement with the first brokerage (5% commission) has a 90-day holdover clause: if the property sells within 90 days after expiry to anyone shown it during the listing period, commission is payable, but the seller's liability is reduced by any commission paid under a new written agreement with another brokerage. After expiry, the seller signs with a second brokerage at 4% and sells for $800,000 to a buyer who toured an open house during the first listing. How much does the seller owe the first brokerage?