Brokerage fee provisions which may be included in a seller’s exclusive right to sell listing agreement include:
Question & Answer
Review the question and all answer choices
a fee on any sale provision.
A is incorrect because a 'fee on any sale provision' is redundant in an exclusive right to sell listing, which already guarantees the broker a commission if the property sells during the listing period, regardless of who finds the buyer.
a termination provision.
a safety clause.
C is incorrect because California law specifically prohibits safety clauses in exclusive right to sell listings. A safety clause would extend the broker's right to commission after the listing expires if the buyer introduced during the listing period purchases within a specified timeframe.
Any of the above.
D is incorrect because not all listed provisions are valid in California exclusive right to sell listings. While termination provisions are allowed, fee on any sale provisions are redundant and safety clauses are prohibited by state law.
Why is this correct?
Option B is correct because termination provisions are standard in listing agreements, allowing either party to end the relationship under specified conditions such as mutual agreement or breach of contract. This is a fundamental element of any valid listing agreement in California.
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