Question

A licensed broker obtained an exclusive right-to-sell listing from an owner. During the listing period, the broker found a buyer who made an offer on the property that was accepted by the seller. Neither the offer nor the escrow instructions mentioned: (a) the broker as the agent, or (b) terms for payment of a commission. Under these circumstances the broker:

a. has no legal right to a commission.
b. must prove that the broker was the procuring cause to be able to collect a commission.
c. is legally entitled to a commission.
d. is subject to disciplinary action by the Real Estate Commissioner for negligence.

Answer 1

Under these circumstances, the broker has no legal right to a commission and must prove that they were the procuring cause to collect a commission.

Step-by-step explanation:

Under these circumstances, the broker has no legal right to a commission. In order for the broker to be entitled to a commission, they would need to be mentioned as the agent in the offer or escrow instructions.

The broker must prove that they were the procuring cause of the sale in order to collect a commission. This means that they must show that they were the one who found the buyer and brought them to the seller.

If the broker is not mentioned in the offer or escrow instructions and cannot prove that they were the procuring cause, they do not have a legal right to a commission.