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Practice Of Real EstateLicense_lawHARD

Broker Thompson in Connecticut has a written listing agreement with a seller that meets all requirements of CGS § 20-325a. The seller accepts an offer and then, before closing, fires Broker Thompson without cause and closes the sale directly with the buyer. The seller argues that because no closing occurred with Thompson's involvement, no commission is owed. Under Connecticut law, which of the following best describes Broker Thompson's legal position?

Correct Answer

B) Thompson is entitled to a commission because he was the procuring cause of the sale, having produced a ready, willing, and able buyer under a valid listing agreement.

Under Connecticut real estate law and the procuring cause doctrine, a broker who produces a ready, willing, and able buyer under a valid listing agreement is entitled to a commission even if the seller subsequently terminates the broker and closes the sale directly. The seller cannot avoid the commission obligation by firing the broker after the broker has already earned the commission by procuring an acceptable buyer. The valid written listing agreement under CGS § 20-325a is enforceable, and the seller's unilateral termination without cause does not extinguish the earned commission.

Answer Options
A
Thompson is not entitled to a commission because Connecticut law requires the broker to be present at closing to earn a commission.
B
Thompson is entitled to a commission because he was the procuring cause of the sale, having produced a ready, willing, and able buyer under a valid listing agreement.
C
Thompson is not entitled to a commission because the seller terminated the agreement before closing, which voids the broker's right to compensation.
D
Thompson is entitled to a commission only if the listing agreement contained a specific safety clause protecting post-termination sales to buyers introduced by the broker.

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Related Topics & Key Terms

Key Terms:

procuring_causecommission_entitlementlisting_agreementcommission_structurect_license_law

Related Concepts

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.

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