In California, a seller signs an open listing agreement with three different brokers simultaneously. Broker A finds a buyer who makes a full-price offer. Under the open listing, which broker is entitled to the commission?
Correct Answer
A) Only Broker A is entitled to the commission because they procured the buyer
Under an open listing (also called a non-exclusive listing) in California, the commission is earned only by the broker who actually procures the buyer. Since Broker A found the buyer who made the full-price offer, only Broker A is entitled to the commission. The other two brokers receive nothing because they did not produce a buyer.
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Previous Question
Under California Business & Professions Code §10176(e), a licensee is required to present all written offers to the seller in a timely manner, even if the property is already under contract. Which fiduciary duty most directly governs this obligation?
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