Question

A seller listed a residence with a broker. The broker brought an offer at full price and terms of the listing agreement from a buyer who is ready, willing, and able to pay cash for the property, but the seller rejected the buyer's offer. In this situation, the seller

A. must sell the property
B. owes a commission to the broker
C. is liable to the buyer for specific performance
D. is liable to the buyer for compensatory damages

Answer 1

The seller owes a commission to the broker.

Step-by-step explanation:

The correct answer is B. owes a commission to the broker.

When a seller lists their property with a broker, they typically sign a listing agreement that includes the terms and conditions of the agreement. In this situation, the broker brought a buyer who offered full price and is ready, willing, and able to pay cash for the property, which meets the terms of the listing agreement. However, the seller rejected the offer, which means they did not comply with the terms of the agreement. As a result, the seller is still obligated to pay the broker a commission, as stated in the listing agreement.