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?
Correct Answer
A) Full commission (5%) as per the exclusive listing agreement terms
In an exclusive listing agreement, the agent earns commission regardless of who finds the buyer, including if the seller finds the buyer independently. This is the key distinction between exclusive and other types of listing agreements where the agent's commission depends on their involvement in procuring the buyer.
Why This Is the Correct Answer
Option A is correct because in an exclusive listing agreement, the agent earns the full commission regardless of who finds the buyer. The seller has contractually agreed to pay the specified commission rate for the agent's exclusive marketing rights during the listing period. This is a fundamental principle of exclusive listings under Canadian real estate law and provincial regulations. The agent's entitlement is based on securing the exclusive listing contract, not on directly procuring the buyer.
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