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; a commission agreement must be in writing to be enforceable
The Statute of Frauds puts real estate commission agreements in writing, so a handshake leaves the agent with no enforceable claim however well the work went. Other choices: finding a buyer earns nothing under an unenforceable agreement; an implied agency can exist without an implied commission, which is the trap here; and friendship has nothing to do with it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
More Laws Of Agency Fiduciary Duties Questions
Under California law, the agency disclosure requirements apply to which types of property?
Under California law, when must a buyer's agent give the agency disclosure form to the buyer?
A broker who fails to promptly disclose their dual agency status is subject to:
A broker’s fiduciary obligation to protect a seller’s confidential information continues:
A broker has an exclusive agency listing on a property. If the owner sells the property, the broker is entitled to:
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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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Under California law, who has the ultimate responsibility for the actions of a real estate salesperson in a transaction?