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Practice Of Real EstateLicense_lawHARD

A Connecticut real estate salesperson, working under Broker Martinez, procures a ready, willing, and able buyer for a property listed by Broker Martinez. The seller ultimately refuses to close the transaction without legal justification. Under Connecticut law, which of the following most accurately describes the salesperson's right to compensation?

Correct Answer

C) The salesperson's right to compensation runs through Broker Martinez; the broker may have a claim against the seller, and the broker would then compensate the salesperson per their agreement

Under Connecticut law, a salesperson has no direct contractual or legal relationship with the seller regarding compensation. All compensation rights flow through the supervising broker. The listing agreement is between the seller and Broker Martinez (the broker), not the salesperson. If a ready, willing, and able buyer is procured and the seller wrongfully refuses to close, the broker may have a legal claim against the seller for the commission. The broker would then compensate the salesperson according to their internal compensation agreement. The salesperson's remedy, if any, is against the broker, not directly against the seller.

Answer Options
A
The salesperson has a direct legal right to sue the seller for the commission because she procured a ready, willing, and able buyer
B
The salesperson has no right to any compensation because Connecticut law requires a completed closing before any commission is earned
C
The salesperson's right to compensation runs through Broker Martinez; the broker may have a claim against the seller, and the broker would then compensate the salesperson per their agreement
D
The salesperson may file a lien against the seller's property under Connecticut's real estate broker lien statute to recover the earned commission

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Related Topics & Key Terms

Key Terms:

commission_earnedready_willing_ablesalesperson_compensationbroker_client_relationship

Related Concepts

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

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