Contracts

In South Dakota, what happens to a listing agreement when the listed property is sold by the seller directly (without the broker's involvement) under an 'exclusive agency' listing?

AThe broker still earns a full commission
BThe broker earns no commission because the seller found the buyer directly✓ Correct
CThe SDREC must arbitrate the commission dispute
DThe broker retains the earnest money

Explanation

In an exclusive agency listing, the seller reserves the right to sell on their own without paying a commission. Only if the broker (or a cooperating broker) produces the buyer is a commission owed.

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