A California listing agent holds an exclusive right-to-sell listing under the C.A.R. Residential Listing Agreement (RLA) with a 90-day safety clause. The listing expires without a sale. Sixty days after expiration, a buyer who was shown the property by the listing agent during the active listing period purchases the property — and the seller did not re-list with any other broker. Does the original listing broker have a valid commission claim?
Correct Answer
C) Yes, because the sale occurred within the 90-day protection period to a buyer the broker had previously introduced to the property
The C.A.R. RLA safety clause (broker protection clause) preserves the listing broker's right to a commission for sales that occur within the specified protection period after listing expiration, provided the buyer was introduced to or shown the property by the broker during the active listing period. Because the sale occurred within 60 days of expiration (inside the 90-day window), the buyer was shown the property by the broker during the listing, and the seller did not re-list with another broker — which would trigger the override exception — the original broker has a valid contractual commission claim.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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.
More Laws Of Agency Fiduciary Duties Questions
A property sold for $450,000. The commission rate was 6%. If the listing broker received 60% of the total commission, how much did the listing broker receive?
An individual who is not employed by the client, but has been delegated agency duties by an agent of the client, is referred to as a(n):
What are the three steps of the agency disclosure in proper chronological order?
An agent needs to disclose a conflict of interest to the affected parties when a principal or service provider in the transaction is the agent’s:
A broker who simultaneously represents the best interests of both opposing parties in a transaction is known as a(n):
- → When showing a listed residential property of one to four dwelling units to potential buyers, the listing broker is required to disclose:
- → Broker fees deposited with the broker before they are earned are called:
- → A real estate broker is subject to disciplinary action from the Department of Real Estate (DRE) if they:
- → The seller states they will accept the buyer’s offer if the broker lowers their 6% commission by 25%. If the broker accepts, they will receive:
- → When a broker wants to store documents electronically, the storage method may not allow the final documents to be altered. What method of electronic document storage is required by the Department of Real Estate (DRE)?
- → A broker receives a full price offer on a house they are listing. Before they present the offer to the seller, another broker brings in an all cash offer for $5,000 less. The listing broker is to:
- → A seller’s broker needs to disclose:
- → Broker Chuck listed a duplex for sale from a corporate owner. After entering into the listing, the officers of the corporation die in a plane crash. What happens to the listing?
- → If a 16-year-old emancipated minor wishes to sell real property, their broker may:
- → A broker who fails to promptly disclose their dual agency status is subject to:
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