Question

Broker Smith had an exclusive brokerage listing agreement with Mr. Mover. Prior to the expiration date, the owner sold the home to old friends and refused to pay Broker Smith a commission. Mr. Mover is obligated to pay Broker Smith:

a) no commission.
b) one-half of the commission.
c) one fourth of the commission.
d) a full commission.

Answer 1

Mr. Mover is obligated to pay Broker Smith a full commission, as the selling of the home to old friends occurred before the expiration of the exclusive brokerage listing agreement, and such agreements typically entitle the broker to a commission for any sale within the term.

Step-by-step explanation:

When a property owner signs an exclusive brokerage listing agreement with a broker, the owner agrees to pay the broker a commission if the property is sold during the term of the listing agreement, regardless of who finds the buyer. In the scenario provided, where Mr. Mover sold the home to old friends and refused to pay Broker Smith a commission before the expiration of the exclusive listing agreement, Broker Smith is typically entitled to a full commission. This is based on the premise that the exclusive agreement gives Broker Smith the sole right to sell the property and to receive a commission for any sale that occurs during the term of the agreement.