A Maryland seller, Donna, signed a listing agreement with broker Carl. The listing agreement was for 90 days at a 3% commission. After 45 days, Donna found a buyer entirely on her own with no involvement from Carl or any other licensee. Donna closed the sale during the active listing period. The listing agreement contained an exclusive right to sell provision. Carl demands his 3% commission. Donna refuses, arguing she found the buyer herself. Under Maryland law, what is the correct outcome?
Correct Answer
B) Carl is entitled to the full 3% commission because an exclusive right to sell listing entitles the broker to a commission regardless of who procures the buyer
Under Maryland law, an exclusive right to sell listing agreement entitles the broker to a commission if the property sells during the listing period, regardless of who procures the buyer — including the seller herself. This is the defining characteristic that distinguishes an exclusive right to sell from an exclusive agency listing. By signing an exclusive right to sell agreement, Donna contractually agreed to pay Carl's commission even if she found the buyer without any assistance from Carl. Carl is entitled to the full 3% commission.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A financing contingency makes the purchase contract conditional upon the buyer obtaining mortgage approval within a specified time period. If the buyer cannot secure financing, they can cancel the contract and receive their earnest money back.
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
More Contracts Questions
A Rhode Island salesperson asks about an owner is about to sign a purchase and sale agreement. What is the best answer?
For the Rhode Island state portion, how should a candidate analyze a seller asks the principal broker about commission split or distribution?
A Rhode Island principal broker reviews a licensee wants to enter a net listing contract. Which answer follows Rhode Island law?
A Rhode Island principal broker reviews a licensee takes a listing agreement. Which answer follows Rhode Island law?
Which Rhode Island rule applies when parties sign a listing, sale, lease, or other real estate contract?
- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
- → In Rhode Island, a licensee submits a written purchase or lease offer to an owner. Which statement is correct?
- → A Rhode Island salesperson asks about a listing agreement or contract for sale is prepared. What is the best answer?
- → Which Rhode Island rule applies when a listing agreement lists property with a multiple listing service?
- → A Rhode Island licensee encounters a listing agreement lets the principal broker retain a portion of deposit money upon buyer default. What should the licensee remember?
- → A Hawaii licensee is reviewing the commission asks to inspect escrow and trust records. What is the best answer?
- → A Hawaii broker asks a salesperson about a deed or lease is not recorded. Which answer follows Hawaii law?
- → For the Hawaii salesperson state portion, interest accrues on a trust-account deposit. Which statement is correct?
- → In a Hawaii real estate transaction, trust funds are placed with a neutral escrow depository for Hawaii property. What should the licensee remember?
- → For the Hawaii salesperson state portion, a licensee secures a party signature on a Hawaii listing or purchase contract. Which statement is correct?
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