Sales Associate Jennifer works for Broker Tom and shows a property listed by Broker Sarah. The buyer Jennifer represents makes an offer that is accepted. However, before closing, the seller decides to cancel the contract for no valid reason. The listing agreement contains a protection clause. Who is entitled to pursue commission from the seller?
Correct Answer
C) Broker Sarah, as the listing broker with the protection clause
The listing broker (Sarah) has the contractual relationship with the seller and the protection clause in the listing agreement, giving her the right to pursue commission. Option A is incorrect because sales associates cannot pursue commissions independently. Option B is incorrect because Tom's brokerage only has a right to commission through the listing broker's agreement. Option D is incorrect because the commission rights flow from the listing agreement.
Why This Is the Correct Answer
Why the Other Options Are Wrong
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More Brokerage Activities Procedures Questions
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- → Sales associate David wants to create business cards for networking events. What must appear on his business cards to comply with Florida law?
- → Real estate broker Sarah discovers that her sales associate Mark has been placing earnest money deposits into his personal checking account instead of the broker's escrow account. Mark claims he always transfers the funds within 24 hours. What should Sarah do according to Florida law?
- → Earnest money deposits in Florida must be placed in escrow within:
- → Broker Thompson discovers that earnest money from a failed transaction has been sitting in his escrow account for 18 months. The buyer and seller cannot agree on disbursement. What is Thompson's best course of action under Florida law?
- → A Florida broker must register sales associates with DBPR within:
- → The difference between commingling and conversion:
- → Broker Martinez operates under the trade name 'Sunshine Realty' which is properly registered with the state. Can his sales associates use 'Sunshine Realty' in their advertising instead of Martinez's personal name?
- → Sales associate Mike wants to place a 'For Sale' sign on a listed property. Under Florida law, whose name must appear on the sign?
- → Sales associate Carmen wants to create business cards for networking events. According to Florida advertising requirements, what information must appear on her business cards?
- → According to Florida statute, what constitutes 'advertising' in real estate practice?
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