Broker Ellis has an exclusive right-to-sell listing. During the listing period, the seller receives an offer from a buyer who was introduced by a previous broker whose listing had expired 6 months earlier. The previous broker claims a commission under a protection period clause in the expired listing. Under Texas law, who is entitled to the commission?
Correct Answer
D) Both brokers may have claims, and the dispute must be resolved based on the specific contract terms
Both brokers may have valid claims depending on the specific terms of each listing agreement. The current broker has rights under the exclusive right-to-sell, while the previous broker may have rights under the protection period clause if the buyer was registered and the period has not expired.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
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In Texas, a sales agent who is assigned by the intermediary broker to communicate with and carry out instructions of one party in a transaction is known as a(n):
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