Sarah lists her home with ABC Realty under an exclusive listing agreement that expires on June 30th. On July 15th, she sells the property to a buyer who first viewed the home during an open house hosted by ABC Realty in May. Assuming a standard holdover clause exists, what is the likely outcome?
Correct Answer
C) ABC Realty is entitled to full commission due to the holdover clause
The holdover clause protects ABC Realty's commission rights because they introduced the buyer to the property during the active listing period, even though the sale closed after expiry. This prevents sellers from avoiding commission by delaying sales until after listing expiration.
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Sarah submits an offer on a property with a condition for home inspection to be completed within 7 days. On day 5, she decides she wants to remove this condition without conducting an inspection. What document should be used?