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Does the listing broker have a way to recover his commission?

A) Yes, through litigation against the seller
B) No, the commission is non-recoverable
C) Yes, by finding another buyer for the property
D) Yes, by increasing the listing price

1 Answer

3 votes

Final answer:

The listing broker can recover their commission by finding another buyer for the property.

Step-by-step explanation:

The listing broker does have a way to recover their commission. The correct option is C, which states that the broker can recover their commission by finding another buyer for the property.

When a listing broker successfully finds a buyer for a property, they earn a commission based on the agreed-upon percentage of the property's sale price. If for some reason the initial buyer falls through and the deal falls apart, the broker can continue working to find another buyer and still earn their commission.

For example, let's say a listing broker finds a buyer willing to purchase a property for $500,000, with a 5% commission. If the deal doesn't go through and the broker can find another buyer who eventually purchases the property for the same price, they would still earn their commission of $25,000.

User Yogesh Aggarwal
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