Broker Natalie in Rhode Island represents a seller under an exclusive agency listing at 4%. During the listing period, the seller independently locates a buyer and completes the sale without Natalie's involvement. The seller refuses to pay any commission. Under Rhode Island law, which outcome is most accurate?
Correct Answer
D) Natalie is entitled to no commission because the seller found the buyer and the exclusive agency agreement exempts seller-procured sales
An exclusive agency listing agreement gives the broker the exclusive right to represent the seller, but it reserves the seller's right to sell the property themselves without owing a commission. This is the critical distinction between an exclusive agency listing and an exclusive right-to-sell listing. Because the seller found the buyer independently, the exclusive agency agreement's seller-exemption clause applies, and Natalie is not entitled to a commission for that sale.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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