This content was created by Houtan Hormozian. This content was uploaded by Houtan Hormozian. This is a YouTube video titled "Question of The Day: Real Estate Exclusive Listings and Commission Due!" (created 2024-10-22T23:52:47Z). The excerpt is an educational Q&A segment (single speaker) explaining real estate listing and commission rules. It presents two multiple-choice scenarios: (1) an owner who tries to cancel a 90-day exclusive listing and then accepts an offer procured by a different broker—answer: the owner is likely liable to both brokers because exclusive listings typically protect the original broker from early cancellation; (2) a seller who gives an open listing to five brokers—answer: each broker has the opportunity to earn the entire commission (the first to procure a ready, willing, and able buyer earns it).
Chapters
Question of the day. Question number one: Owner Jones gives Broker Smith a 90-day exclusive listing. One week into the listing, Jones notifies Broker Smith in writing that he is terminating the listing. The next day, Owner Jones signs an open listing with Broker King. Within a week, Broker King brings in an offer, which Owner Jones accepts. As to the commission, which of the following is true? Jones cannot enter into an open listing which is concurrent with another listing. Owner Jones is most likely liable to both Smith and King. Broker Smith is not entitled to a commission because the listing was terminated. King is entitled to no commission. The answer is B, owner Jones is most likely liable to both Smith and King. Listing contracts generally have a clause protecting brokers from early cancellation. Most likely, Jones will be liable to both brokers because King procured a buyer, but Smith was protected by the terms of the original 90-day exclusive listing. Remember, one party to a contract can't unilaterally decide to cancel the contract, as Jones tried to do to Smith with his written notification. Cancellation of a valid contract requires mutual consent. Question number 2. Mr. Seller signs an open listing on his home with 5 different brokers. In this case? A. The owner must pay the first broker to take the listing no matter who sells it. B. Each broker has an opportunity to earn the entire commission. C. The owner must pay a full commission to all 5 brokers when it sells. D. The broker will split the commission 5 ways regardless of who sells it. The answer is B. Each broker has an opportunity to earn the entire commission. An open listing is one given to any number of brokers who can work simultaneously to sell the owner's property. The first broker to secure a buyer who is ready, willing, and able to purchase the property earns the commission.
