Question

A seller listed her home with a broker. Shortly thereafter, the seller telephoned the broker and withdrew the exclusive-right-to-sell listing. A week later, she sold the home to her neighbor for a higher price than the price on the listing. In this situation, which of the following is true? Select one: A. The owner has the right to terminate the listing at any time without being liable for damages B. Under an exclusive-right-to-sell listing, the broker is not entitled to damages C. The broker is not entitled to a commission because the seller obtained a better price than she would have received through the broker's efforts D. If the owner withdrew the listing after the broker spent money on it, the owner may be liable to the broker for damages.

Answer 1

In circumstances where the seller withdraws a real estate listing with a broker and then sells the property at a higher price, the seller may be liable for damages if the broker has already invested time and resources into the listing, depending on the terms of the listing agreement.

Step-by-step explanation:

In a situation where the seller listed her home with a broker, but then withdrew the exclusive-right-to-sell listing, if the owner sold the home for a higher price after the withdrawal, the outcomes can vary. Primarily, option D is true. If the owner withdrew the listing after the broker had time and resources invested in it, the owner may be liable for damages. This is true in case of most contracts where there are implications for breach of contract.

However, this liability may depend on the terms of the listing agreement, which may allow for termination without penalty or may impose damages for withdrawal before a certain period or without proper notice. Even so, regardless of the agreed price in the listing, if the seller finds a buyer willing to pay a higher price, the broker's commission would usually be calculated based on the original agreed price, unless otherwise indicated in the contract.

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