ContractsIntermediateArizona Exam

In an Arizona residential purchase, the seller's obligation to pay real estate commissions is established by:

AState law requiring commission payment
BThe listing agreement between the seller and listing brokerCorrect
CThe MLS cooperative compensation agreement
DThe Arizona Association of Realtors

Why The listing agreement between the seller and listing broker Is Correct

Answer B: The listing agreement between the seller and listing broker

The seller's obligation to pay a commission is established by the listing agreement—a contract between the seller and the listing broker. The MLS cooperative compensation is between brokers and doesn't directly obligate the seller to the buyer's broker.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

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