A Montana real estate broker lists a property and later finds a buyer herself without involving a cooperating broker. The listing agreement states a 6% commission. The seller argues that since no cooperating broker is involved, the commission should be reduced to 3%. Under Montana law, which of the following is most accurate?
Correct Answer
B) The broker is entitled to the full 6% commission as agreed in the listing agreement, regardless of whether a cooperating broker participates.
Commission rates in Montana are negotiable and are set by the terms of the listing agreement between the broker and the seller. The listing agreement specifies 6%, and the broker is entitled to that full amount upon successfully procuring a ready, willing, and able buyer — regardless of whether a cooperating broker participates. There is no Montana law requiring commission reduction when the listing broker also represents the buyer or finds the buyer directly.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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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