Seller Garcia in California signs an exclusive agency listing with Broker Wilson. During the listing period, Garcia's coworker expresses interest in buying the home. Garcia negotiates directly with the coworker and reaches a deal without Broker Wilson's involvement. Under this listing arrangement, is Broker Wilson entitled to a commission?
Correct Answer
A) No; under an exclusive agency listing the seller may sell alone without owing a commission
That is exactly what separates an exclusive agency listing from an exclusive right to sell: the seller keeps the right to find a buyer without the broker and owe nothing. Other choices: proof of advertising does not create a claim the contract withheld; there is no related-party exemption; and not all exclusive listings guarantee a commission, which is the distinction the question is about.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by the conduct or actions of the parties rather than by a written or oral agreement.
The legal obligation to reveal information that could affect a party's decision to enter into or the terms of a real estate transaction.
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
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:
- → Under California Business and Professions Code §10140.6, what must a licensee disclose on solicitation materials intended to be the first point of contact with consumers, such as a business card or an open house sign?
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