Houtan HormozianExpert on Real Estate, Finance and PropTech

Think you know real estate? Show off your expertise and take a guess! Lets see who gets it right!

3 Oct 2024 · 2 min

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1:42

The video presents two real‑estate law quiz questions. The first asks which element a broker does NOT need to prove to earn a commission when his license is revoked during an exclusive listing; the correct answer is that the broker does not need to show he was licensed at the time the commission was earned, because a broker who was licensed when the listing agreement was signed and acted as the procuring cause can still collect. The second question concerns a borrower whose foreclosure sale leaves a $14,000 shortfall; the lender must pursue a deficiency judgment to recover the remaining balance. The speaker explains the legal reasoning behind each answer, emphasizing the procuring‑cause doctrine for commissions and the nature of deficiency judgments as unsecured money judgments after a foreclosure sale.

Chapters

Question of the day. Question number 1. During the term of an exclusive authorization and right to sell listing, the broker has his license revoked by the Real Estate Commission. To prove that he is entitled to a commission, he must prove all of the following except: A, that the buyer and seller agreed to the sale during the listing term. B, that he was licensed at the time the commission was earned. C, that the listing was a legally binding agreement. That he was the procuring cause of the sale. The answer is B, that he was licensed at the time the commission was earned. B is the exception. A broker can still earn a commission if they were licensed when the listing agreement was signed and fulfilled their duties, even if the license was revoked later. The key is that they must have been the procuring cause of the sale while licensed. A borrower defaulted on his home mortgage loan payments, and the lender obtained a court order to foreclose on the property. At the foreclosure sale, the property sold for $164,000. The unpaid balance on the loan at the time of foreclosure was $178,000. What must the lender do to recover the $14,000 that the borrower still owed? A. Sue for damages. B. Seek a deficiency judgment. Sue for specific performance. Seek a judgment by default. The answer is B. Seek a deficiency judgment. A deficiency judgment is an unsecured money judgment against a borrower whose mortgage foreclosure sale did not produce sufficient funds to pay the underlying promissory note or loan in full.