Question

A couple enters into an open listing agreement with Snaildust Realty. Later the sellers find a buyer themselves and notify the broker. Which of the following would be true?

a) The listing agreement is a voidable agreement at the option of the broker.
b) The listing agreement remains in effect as a bilaterally enforceable agreement.
c) The listing agreement is terminated.
d) Half the commission as been earned by the broker.

Answer 1

The listing agreement is terminated if the sellers find a buyer themselves and notify the broker.

Step-by-step explanation:

The correct answer is c) The listing agreement is terminated.

When a couple enters into an open listing agreement with a real estate broker, they have the right to sell their property themselves without owing the broker a commission. If the sellers find a buyer on their own and notify the broker, the listing agreement is terminated. The sellers are no longer obligated to work with the broker and can proceed with the sale independently.

No commission is earned by the broker in this scenario, as the sellers found a buyer on their own and did not use the broker's services to complete the sale.