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#348973 - 08/22/10 04:59 PM Real Estate Broker Relationship Quiz Question (2)
DEM Offline
Member

Registered: 08/18/10
Posts: 13
Loc: Michigan
A broker secured a "no sale, no commission" listing on a property, signed by the owner and the broker. A buyer was found who was ready, willing, and able to buy, and a sales agreement was signed by both buyer and seller. The sales agreement was later canceled arbitrarily by the seller. Is the seller liable for a commission to the broker?

(Please give a yes or no answer with an explanation for your answer)

Will try to post another quiz question is 12 hours... If you have a subject request please inbox me. For instance... If you're experiencing a certain situation that you'll like to have an answer for send a request for a quiz question and I'll try to post one that matches your dilemma

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#348995 - 08/22/10 08:21 PM Re: Real Estate Broker Relationship Quiz Question (2) [Re: DEM]
LanceG Offline
Member

Registered: 08/25/09
Posts: 31
Loc: Louisiana
IMHO, yes.

The broker held up their end of the agreement(find a buyer), it is up to the seller to hold up their end(provide a commission)

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#349024 - 08/23/10 08:21 AM Re: Real Estate Broker Relationship Quiz Question (2) [Re: LanceG]
DEM Offline
Member

Registered: 08/18/10
Posts: 13
Loc: Michigan
Answer: Yes, because the cancellation was arbitrary on his/her part. Reason: The seller is liable for the commission because the cancellation was arbitrary on his part and violated the terms of a valid listing contract and a valid contract of sale.

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#359995 - 12/08/10 10:54 PM Re: Real Estate Broker Relationship Quiz Question (2) [Re: DEM]
mn-houses Offline
Member

Registered: 11/21/10
Posts: 47
Loc: St. Paul, MN
Based on this string, aren't 99% listings a "no sale, no commission" contract? Unless a retainer fee is secured at the property listing contract signing, then as far as my experiences have enlightened me, all residential listing agreements are "no sale, no commission" agreements. Great post!

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