5. Broker has an exclusive right to sell listing agreement with Seller for a period of...

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5. Broker has an exclusive right to sell listing agreement with Seller for a period of 180 days; the list price for the house is $300,000, and the stated commission is 6%. On day 179, Broker shows the property to Buyer, who is secretly very interested in the property. However, Buyer knows that the listing agreement is about to expire, and so Buyer tells Broker that he is not ready to make a commitment. On day 183, and three days after the listing agreement has expired, Buyer approaches Seller directly, with an offer of $285,000. Buyer explains that this is really more than the Seller's asking price because now that the listing agreement has expired, Seller will not have to pay an $18,000 commission to Broker. If Buyer and Seller consummate the sale without paying Broker a commission, have they acted unethically? Have they acted illegally? 5. Broker has an exclusive right to sell listing agreement with Seller for a period of 180 days; the list price for the house is $300,000, and the stated commission is 6%. On day 179, Broker shows the property to Buyer, who is secretly very interested in the property. However, Buyer knows that the listing agreement is about to expire, and so Buyer tells Broker that he is not ready to make a commitment. On day 183, and three days after the listing agreement has expired, Buyer approaches Seller directly, with an offer of $285,000. Buyer explains that this is really more than the Seller's asking price because now that the listing agreement has expired, Seller will not have to pay an $18,000 commission to Broker. If Buyer and Seller consummate the sale without paying Broker a commission, have they acted unethically? Have they acted illegally? 5. Broker has an exclusive right to sell listing agreement with Seller for a period of 180 days; the list price for the house is $300,000, and the stated commission is 6%. On day 179, Broker shows the property to Buyer, who is secretly very interested in the property. However, Buyer knows that the listing agreement is about to expire, and so Buyer tells Broker that he is not ready to make a commitment. On day 183, and three days after the listing agreement has expired, Buyer approaches Seller directly, with an offer of $285,000. Buyer explains that this is really more than the Seller's asking price because now that the listing agreement has expired, Seller will not have to pay an $18,000 commission to Broker. If Buyer and Seller consummate the sale without paying Broker a commission, have they acted unethically? Have they acted illegally? 5. Broker has an exclusive right to sell listing agreement with Seller for a period of 180 days; the list price for the house is $300,000, and the stated commission is 6%. On day 179, Broker shows the property to Buyer, who is secretly very interested in the property. However, Buyer knows that the listing agreement is about to expire, and so Buyer tells Broker that he is not ready to make a commitment. On day 183, and three days after the listing agreement has expired, Buyer approaches Seller directly, with an offer of $285,000. Buyer explains that this is really more than the Seller's asking price because now that the listing agreement has expired, Seller will not have to pay an $18,000 commission to Broker. If Buyer and Seller consummate the sale without paying Broker a commission, have they acted unethically? Have they acted illegally?

Answer rating: 100% (QA)

Solution If Buyer and Seller consummate the sale without paying Broker a commission it could be cons... View the full answer