In an exclusive listing agreement, if the commission rate is not specified in writing, what typically occurs?
Correct Answer
D) The listing agreement may be unenforceable for lack of certainty
A contract lacking essential terms such as commission rate may be unenforceable due to uncertainty. All material terms, including compensation, must be clearly specified in writing for a listing agreement to be legally binding and enforceable.
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In an Agreement of Purchase and Sale, what is the primary purpose of a condition precedent?
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In an exclusive listing agreement, the seller agrees to pay a 5% commission. During the listing period, the seller finds a buyer independently and completes the sale without any involvement from the listing agent. What is the agent's entitlement to commission?