A California seller signs a listing agreement entitling the broker to a commission if the property sells to any buyer during the listing period, regardless of who procures that buyer. Midway through the listing period, the seller accepts a purchase offer from a buyer the broker had no contact with. Which of the following correctly describes the seller's commission obligation?
Correct Answer
B) The seller owes the full agreed commission, since an exclusive right to sell covers a sale to any buyer
An exclusive right to sell earns the broker the commission on any sale during the term, whoever brings the buyer - that is the whole difference between it and an exclusive agency listing. Other choices: introducing or negotiating with the buyer is what an open listing turns on, not this one; marketing efforts do not have to be traced to the buyer; and no extra clause is needed, because covering sales the broker did not procure is what the form already says.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
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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