A California seller signs an exclusive right to sell listing with Broker Yamamoto. The listing agreement includes a safety clause that names specific buyers who viewed the property during the listing term. After the listing expires, one of the named buyers contacts a different broker and purchases the property within the protection period. Under California law, which of the following statements is correct?
Correct Answer
C) Yamamoto is entitled to a commission; the buyer was named and the sale fell inside the period
A safety clause naming specific buyers does exactly this: a sale to one of them inside the protection period is the listing broker's commission, from the seller. Other choices: the clause does not turn on whether the buyer used the broker's marketing; the seller owes it, not the new broker; and the buyer having other representation is beside the point, which is the whole reason the clause exists.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The extent of power and actions an agent is authorized to perform on behalf of the principal, as defined by the agency agreement.
The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
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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