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
C) 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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A listing agreement contains a 'holdover clause' stating that if the property sells within 90 days after expiry to anyone shown the property during the listing period, the brokerage is entitled to commission. The seller lists with a new brokerage immediately after expiry and sells to a buyer who attended an open house during the original listing period. Who is entitled to commission?