Question

Broker Tom sold a property listed with broker Alice. Tom was unable to attend the closing and broker Alice collected the entire commission. Should broker Alice refuse to pay broker Tom his share of the commission, broker Alice could be charged with:

a. failure to account.
b. collecting an overage.
c. commingling.
d. fraud.

Answer 1

If broker Alice refuses to pay broker Tom his share of the commission despite him selling the property, she could be charged with a failure to account, which refers to not properly handling funds due to another party.

Step-by-step explanation:

If broker Alice refuses to pay broker Tom his share of the commission after selling the property listed with her, and she collected the entire commission, this action could be charged as a failure to account. In real estate and business dealings, a failure to account refers to the improper handling of funds that are due to another party. In this case, since Tom sold the property, he is typically entitled to a portion of the commission. If Alice keeps the entire commission without properly disbursing Tom's share, she is not accounting for the funds that are rightly his. This does not necessarily fall under the definition of collecting an overage, commingling, or fraud, without additional context or evidence suggesting such wrongdoings.