Brokerage fee provisions which may be included in a seller’s exclusive right to sell listing agreement include:
Correct Answer
D) Any of the above.
'Any of the above' — because all three provisions listed (fee on any sale, termination provision, and safety clause) are legally permissible and commonly included in California exclusive right to sell listing agreements. California courts and the DRE have consistently recognized these clauses as valid components of a written listing agreement, provided the agreement as a whole satisfies the Statute of Frauds requirements under Civil Code § 1624. The exclusive right to sell format, by its nature, is the most comprehensive listing type and accommodates all of these protective provisions.
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Broker Sarah delivered an offer to purchase real property to Owner Martha. Owner Martha asked for 24 hours to consider the offer. Later that same day, Broker Sarah received two additional offers through other brokers. Broker Sarah believes the owner will reject all three offers. In order to comply with the law, Broker Sarah is to:
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