A homeowner in California asks a friend who is a licensed real estate agent to help sell their home but says, 'Don't worry about any formal paperwork — just find me a buyer.' The agent finds a buyer and the sale closes. The homeowner then refuses to pay the commission. Under California law, can the agent collect the commission?
Correct Answer
B) No, because a real estate commission agreement must be in writing to be enforceable under the California Statute of Frauds
Under the California Statute of Frauds (Civil Code §1624(a)(4)), an agreement authorizing an agent to procure a buyer or seller of real property must be in writing to be enforceable. Without a written listing agreement specifying the commission, the agent cannot legally enforce payment of a commission, even if they successfully found a buyer.
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Under California Civil Code §2079.16, a seller's agent owes certain duties to the buyer, even though the agent does not represent the buyer. All of the following are duties owed by a seller's agent to the buyer EXCEPT:
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