Question

When Sara Cellar hires Broker Bloke to sell her home, their listing contract gives Bloke an exclusive right-to-sell. Two weeks later, Sara sells the home to her friend, George. Which of the following is true?

a) Sara will owe Bloke one-half of the agreed upon commission.
b) Sara may not sell until the contract expires.
c) Bloke will receive no commission.
d) Although Sara has sold the house, Bloke will receive a commission.

Answer 1

The correct answer is d) Although Sara has sold the house, Bloke will receive a commission. When Sara hired Broker Bloke, their listing contract gave Bloke an exclusive right-to-sell, which means that Bloke has the exclusive right to sell Sara's home. It's important for sellers to understand the terms of the listing contract before signing and to be aware that the listing agent may still be entitled to a commission even if the seller finds a buyer themselves.

Step-by-step explanation:

The correct answer is d) Although Sara has sold the house, Bloke will receive a commission.

When Sara hired Broker Bloke, their listing contract gave Bloke an exclusive right-to-sell, which means that Bloke has the exclusive right to sell Sara's home. Even if Sara sells the home to her friend George, Bloke will still receive a commission because he had the exclusive right to sell the home and Sara sold the home within the agreed-upon time frame.

It's important for sellers to understand the terms of the listing contract before signing and to be aware that the listing agent may still be entitled to a commission even if the seller finds a buyer themselves.