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When may a listing broker change her offer of compensation to a cooperating broker?

A) After the closing of the sale
B) Only with the seller's consent
C) Anytime before an offer is accepted
D) Only in case of a legal dispute

1 Answer

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Final answer:

A listing broker may change her offer of compensation to a cooperating broker anytime before an offer to purchase is accepted, as this is when the offer of compensation becomes binding. Changes made after a contract is accepted are generally not permitted unless agreed upon by all parties involved.

Step-by-step explanation:

C) Anytime before an offer is accepted When it comes to real estate transactions, the listing broker has an important role in determining the compensation offered to a cooperating broker. According to general guidelines in the real estate industry, a listing broker may change her offer of compensation to a cooperating broker C) Anytime before an offer is accepted. This is because the offer of compensation is seen as an invitation to other brokers to bring potential buyers and once an offer to purchase is accepted, the promised compensation becomes binding. Alterations to the compensation can be made prior to acceptance, but after a legal and binding contract is created, changing the terms unilaterally is generally not permitted.

It's also relevant to note that such a change must be made known to potential cooperating brokers promptly, or the original compensation offer could still be enforceable if they were not informed of the change before they began their performance under the expectation of the initial offer.A listing broker may change her offer of compensation to a cooperating broker anytime before an offer is accepted. This means that the listing broker can modify the amount of compensation they are willing to offer the cooperating broker as long as the seller has not yet accepted an offer. The change in offer does not require the seller's consent or occur only after the closing of the sale.

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