Revocation of exclusive right of sale agreement by owner: If owner revokes and sells property during the remaining term, the owner would be liable to broker for full commission; may still be liable even if they don't sell.

Study for the Florida Mutual Recognition Test. Use flashcards and multiple choice questions, each with hints and explanations. Prepare thoroughly for your exam!

Multiple Choice

Revocation of exclusive right of sale agreement by owner: If owner revokes and sells property during the remaining term, the owner would be liable to broker for full commission; may still be liable even if they don't sell.

Explanation:
In an exclusive-right-to-sell listing, the broker earns a commission if the property is sold during the term of the listing, no matter who finds the buyer. Because the owner signed this contract, revoking the listing does not erase the broker’s right to a commission if a sale happens within the remaining term. If the owner then sells the property during that period, the broker is entitled to the full agreed commission—the contract gives the broker that exclusive claim for the term. That’s why other options don’t fit. It isn’t no commission—the exclusive-right-to-sell arrangement ensures the broker’s fee for any sale during the term, even if the owner procures the buyer themselves. It isn’t limited to a sale by another broker; the broker’s claim applies regardless of who completes the sale. And it isn’t just marketing expenses—the broker’s full commission, not merely marketing costs, is typically due under an exclusive-right-to-sell listing.

In an exclusive-right-to-sell listing, the broker earns a commission if the property is sold during the term of the listing, no matter who finds the buyer. Because the owner signed this contract, revoking the listing does not erase the broker’s right to a commission if a sale happens within the remaining term. If the owner then sells the property during that period, the broker is entitled to the full agreed commission—the contract gives the broker that exclusive claim for the term.

That’s why other options don’t fit. It isn’t no commission—the exclusive-right-to-sell arrangement ensures the broker’s fee for any sale during the term, even if the owner procures the buyer themselves. It isn’t limited to a sale by another broker; the broker’s claim applies regardless of who completes the sale. And it isn’t just marketing expenses—the broker’s full commission, not merely marketing costs, is typically due under an exclusive-right-to-sell listing.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy