Broker Patricia has a written listing agreement with seller Mr. Garcia. Before the property sells, Mr. Garcia decides to terminate the listing without cause. Patricia believes she is owed a commission because she produced a ready, willing, and able buyer. Under Michigan law, Patricia's right to a commission is primarily determined by which of the following?
Correct Answer
C) The specific terms of the written listing agreement between Patricia and Mr. Garcia
In Michigan, commission rights are determined by the terms of the written listing agreement between the broker and the seller. There is no statutory minimum commission rate, and commissions are freely negotiable. Whether Patricia is owed a commission upon early termination depends entirely on what the listing agreement specifies regarding termination and commission protection clauses.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
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