A seller signs an exclusive right-to-sell listing agreement with Broker Chen that includes a 90-day safety clause. Before the listing expires, Broker Chen provides the seller with a written list of prospective buyers that includes the name of Buyer Torres, whom Chen had shown the property. The listing expires, and 60 days later, Buyer Torres contacts the seller directly and the parties execute a purchase agreement. Under California law and standard C.A.R. listing terms, is Broker Chen entitled to a commission?
Correct Answer
D) Yes, because the broker timely submitted the buyer's name in writing before expiration, the sale occurred within the 90-day protection period, and the buyer was procured during the listing term
Under the standard C.A.R. Residential Listing Agreement, the safety clause entitles the broker to a commission if two conditions are both met: (1) the broker provided the seller with a written list of protected buyers before or upon expiration of the listing, and (2) the sale to one of those listed buyers is consummated within the protection period. Here, both conditions are satisfied — Chen submitted Torres's name in writing before expiration, and the sale closed within the 90-day window.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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