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An owner gave an exclusive agency listing to broker Joe and an open listing to broker Mary. Mary sold the property and was paid a commission. Which of the following statements are CORRECT? Select one:

a. Joe can report Mary to the Commission because she took his commission.
b. Mary must share the fee with Joe.
c. Joe got nothing because he did not handle the sale.
d. Joe is due a full commission

1 Answer

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Final answer:

The correct answer is that Joe got nothing because he did not handle the sale. An exclusive agency listing entitles Joe to commission only if he sells the property, while an open listing with Mary allows her to earn commission if she sells regardless of Joe's listing.

Step-by-step explanation:

In the scenario where an owner gives an exclusive agency listing to broker Joe and an open listing to broker Mary, and Mary sells the property and receives a commission, the correct statement is:

c. Joe got nothing because he did not handle the sale.

With an exclusive agency listing, the listing broker (Joe) is due a commission if he is the selling broker or if the property is sold by anyone other than the owner working alone. However, if the owner also gives an open listing to another broker (Mary) and that broker completes the sale, only the broker who sells the property (Mary) is entitled to the commission. Broker Joe cannot claim a commission because he did not sell the property, nor can he report Mary because she legitimately sold the property under her open listing agreement.

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