Broker Diana lists a property in Providence under an exclusive right-to-sell agreement at a 5% commission. During the listing period, the seller, acting entirely on his own, finds a buyer and completes the sale without Diana's involvement. Under Rhode Island law, which statement correctly describes Diana's commission rights?
Correct Answer
A) Diana is entitled to the full 5% commission because the exclusive right-to-sell agreement protects the broker regardless of who procures the buyer
Under an exclusive right-to-sell listing agreement, the broker earns the commission if the property is sold during the listing period regardless of who finds the buyer — including the seller themselves. This is the defining feature of an exclusive right-to-sell agreement under Rhode Island contract and license law. Diana is entitled to the full agreed commission of 5%.
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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.
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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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