Real Estate Commission Dispute: Licensee's Compensation
What happens when a licensee finds a buyer for a seller's house but the seller refuses to sell?
a) Licensee Jake would not be entitled to his compensation.
b) Seller Norm would have to sell as a FSBO, and licensee Jake would be out his compensation.
c) Licensee Jake can appeal to the MLS board for partial compensation payment.
d) Licensee Jake would still be entitled to his compensation.
Final answer:
In a real estate context, if Jake, the licensee, found a buyer according to the terms of the agreement, seller Norm's refusal to sell doesn't necessarily mean Jake loses his compensation. The correct answer is Jake would still be entitled to his compensation. But, the specific terms of the agreement might affect this.
Explanation:
In the context of real estate, the scenario falls under breaches of contract rules. If licensee Jake has a valid listing agreement and he found a buyer in accordance to the agreement, then Seller Norm's refusal to sell doesn't necessarily mean that Jake would lose his compensation. Generally, the answer is d) Licensee Jake would still be entitled to his compensation. Jake performed his part of the agreement: he found a buyer willing and ready to purchase the house. However, it would ultimately depend on the terms of the specific listing agreement between Jake and Norm. Legal assistance may be relied upon to clarify the terms and consequences of the agreement.