Real Estate Math
A Texas listing expires after 6 months with no sale. The broker spent $2,400 in marketing costs. The seller owes the broker:
A$2,400 for marketing costs
BNothing, because no sale occurred and the listing agreement didn't specify cost reimbursement✓ Correct
CHalf the agreed commission
DA cancellation fee of 1% of the list price
Explanation
Unless the listing agreement explicitly provides for reimbursement of marketing costs upon expiration without a sale, the broker is generally not entitled to recover costs if no sale occurred. Real estate commissions are typically earned only upon a completed transaction.
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