A real estate agency has entered into an exclusive agency agreement with a vendor, but the vendor finds their own purchaser without any involvement from the agency. What are the commission implications?

Option A: The agency is entitled to full commission as per the agreement

Option A is incorrect because exclusive agency agreements do not automatically entitle the agent to full commission when the vendor finds their own buyer. Unlike sole agency agreements, exclusive agency agreements typically allow vendors to sell independently without commission liability, unless specifically negotiated otherwise. The commission entitlement depends on the particular terms agreed upon, not a blanket rule requiring full commission payment.

Option B: The agency is entitled to no commission

Option B is incorrect because it assumes no commission is ever payable when vendors find their own buyers under exclusive agency agreements. While this is often the case, it's not an absolute rule. Some exclusive agency agreements may include terms requiring commission payment even for vendor-found sales, particularly where the agent has invested significant marketing resources or provided substantial services during the listing period.

Option C: The agency is entitled to half commission

Option C is incorrect because there is no standard 'half commission' rule in New Zealand real estate law for vendor-found sales under exclusive agency agreements. Commission rates and entitlements are matters of contractual negotiation between the parties. The specific percentage or amount payable, if any, depends entirely on what was agreed upon in the exclusive agency agreement terms, not predetermined fractional amounts.