Question

The listing broker, AAA Realty, shows a house to the Smiths two days before the listing expires. The listing has a 30-day holdover period, no box was checked in the Holdover clause in the Listing Contract. The buyers call the broker back four days after seeing the house and want to buy it. The sellers have listed the house with another broker, Rogers Realty. The sellers accept the offer of the Smith’s from AAA realty to buy the house. Which of the following is true?a. AAA Realty is not entitled to a commission
b. Rogers Realty is entitled to the listing and selling commission
c. AAA gets the selling (buyers) commission and Rogers Realty gets the listing commission
d. AAA Realty is entitled to the listing and the selling commission

Answer 1

Answer:

c. AAA gets the selling (buyers) commission and Rogers Realty gets the listing commission

Explanation:

Hold Over Clause states:

"Provided,however, Seller Shall Not owe the commission to Brokerage Firm under this  7.2.3 if a commission is earned by another licensed real estate brokerage firm acting pursuant to an exclusive agreement entered into during the Holdover Period and a Sale or Lease to a Submitted Prospect is consummated. If no box is checked above in this 7.2.3, then Seller shall not owe the commission to Brokerage Firm."