Question

The listing broker, AAA Realty, shows a house to the Smiths two days before the listing expires. The listing has a 30-day holdover period, no box is checked in the clause. The buyers call the broker back four days after seeing the house and want to buy it. The sellers have listed the house with another broker, Rogers Realty. The sellers accept the offer of the Smith’s to buy the house.Which of the following is true?

a) AAA Realty is not entitled to a commission
b) Rogers Realty is entitled to the listing and selling commission
c) AAA and Rogers Realty are both entitled to a commission
d) AAA Realty is entitled to the listing and the selling commission

Answer 1

Answer: c) AAA and Rogers Realty are both entitled to a commission

Explanation: The holdover period is a specified period in a contract that protects the estate agent's commission. If a buyer sees the property during the listing period and buys it within the holdover period, the seller will pay the estate agent the selling commission, even if the property is no longer listed with them. In this question, the Smiths saw the property during the period that it was listed by AAA realty and decided to buy it before the holdover period expired.

So AAA Realty gets the selling commission while Rogers Realty gets the listing commission.