Broker Tina is affiliated with Harbor Realty. She negotiates a listing agreement on behalf of the firm with seller Paul. The listing agreement specifies a 6% commission. Before the property closes, Tina leaves Harbor Realty and affiliates with a new firm, Shoreline Properties. The property subsequently sells while Tina is affiliated with Shoreline. Paul refuses to pay any commission, arguing the listing agreement is now void because Tina changed firms. Which of the following best describes the legal status of the listing agreement and the right to commission?
Correct Answer
A) The listing agreement remains valid and enforceable by Harbor Realty, because the contract was between Paul and the firm, not between Paul and Tina personally
Under Washington law, a listing agreement is a contract between the seller and the real estate firm (represented by the designated broker), not a personal contract with the individual broker who negotiated it. When Tina leaves Harbor Realty, the listing agreement — and the right to earn the commission — remains with Harbor Realty. Paul's obligation to pay the commission is to the firm, not to Tina. The departure of an affiliated broker does not void or make voidable the firm's listing contract.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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