ContractsIntermediateCalifornia Exam

Under an 'exclusive agency' listing, when does the broker NOT earn a commission?

AWhen another broker procures the buyer, consistent with common contract law principles
BWhen the seller personally finds and sells the property without the broker's assistanceCorrect
CWhen the property sells below the listed price, per standard contingency and disclosure practice
DWhen the listing expires before a sale occurs, under standard California purchase contract terms

Why When the seller personally finds and sells the property without the broker's assistance Is Correct

Answer B: When the seller personally finds and sells the property without the broker's assistance

Under an exclusive agency listing, the broker is the only broker authorized to sell, but the seller retains the right to sell the property themselves without paying a commission. If the seller personally finds the buyer, no commission is owed to the 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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