Broker Thompson lists a property and includes a provision in the listing agreement that the commission will be 'whatever the market standard is at the time of closing.' Under TREC rules, is this commission provision valid?
Correct Answer
C) No, because the listing agreement must specify a definite commission amount or a clear method to calculate it
Under TREC rules, the listing agreement must specify a definite commission amount or a clear method of determining it. A vague reference to 'market standard' does not provide the specificity required.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created by a clear, explicit agreement between the principal and agent, either orally or in writing.
The highest legal obligation of trust and confidence owed by an agent to their principal, requiring the agent to act solely in the principal's best interest.
An agency relationship where the agent agrees to act on behalf of the principal without receiving compensation.
More Texas Agency Law Questions
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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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