Question

Broker A has an exclusive authorization and right to sell listing agreement to sell Seller B's house for $300,000. Broker A brings Buyer C to see the house. Buyer C immediately makes a full cash offer of $300,000 to buy the house with no contingencies in the contract. Seller B decides he can probably get more for the house and refuses the offer, raising the asking price of the house. Does Seller B owe the broker a commission?

Answer 1

Seller B would owe the broker a commission if they had an exclusive authorization and right to sell listing agreement with the broker, regardless of whether they refuse an offer or raise the asking price.

Step-by-step explanation:

Seller B would owe the broker a commission if they had an exclusive authorization and right to sell listing agreement with the broker. Although Seller B decided to refuse the full cash offer and raise the asking price, this does not release them from their contractual obligation to pay the broker a commission. The broker successfully brought a potential buyer to see the house and made a full cash offer with no contingencies, fulfilling their part of the agreement.