In BC, if a buyer representation agreement is terminated early due to the brokerage's breach, what happens to any commission earned on a property the buyer subsequently purchases?
Correct Answer
A) The brokerage may forfeit the right to commission depending on the circumstances
Whether a brokerage can still claim remuneration after a buyer representation agreement ends depends on the terms of the agreement and on general contract law. A brokerage whose own breach caused the termination may lose its right to be paid, but the outcome depends on the nature of the breach and the circumstances, so the answer is not automatic either way.
Why This Is the Correct Answer
This answer is correct. A brokerage that breaches its duties under the agreement or the Rules may forfeit its claim to commission on a later purchase, but forfeiture is not automatic. It depends on the seriousness of the breach, whether it justified termination, and the wording of the agreement.
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