If a seller negotiated directly with a prospective buyer after a listing expired, are they obligated to pay the original broker a commission?

Prepare for the National Salesperson Exam with multiple choice questions, each offering explanations and hints. Hone your skills and get ready to succeed on the test!

The correct choice highlights a key principle in real estate transactions, known as "procuring cause." In this context, if a seller negotiates directly with a prospective buyer after their listing has expired, the broker may still be entitled to a commission if they were the procuring cause of the sale. This means that if the broker played a significant role in connecting the buyer and the seller or facilitated the buyer's interest during the duration of the listing, they essentially created the circumstances that led to the sale, even if it occurred after the listing period ended.

The concept of procuring cause suggests that brokers deserve compensation for their efforts in initiating the sale process. Thus, if the broker's actions directly resulted in the buyer's interest — such as showing the property or providing information that ultimately led to the negotiation — they can still claim a commission, despite the subsequent negotiations occurring without their involvement after the listing expired.

Other options do not capture the nuances of the obligation to pay the broker based on their role in the transaction. Factors like the timeframe of the listing or the exclusivity of rights do not negate the entitlement of a broker to commission if they are deemed the procuring cause of the sale.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy