Question 1 & Explain Answer Please

A client entered into a verbal exclusive right to sell listing agreement with ABC Realty two years ago. The original agreement allowed ABC Really to offer the property for a limited time with the understanding that it would eventually be listed with a friend at XYZ Real Estate Inc. The property remained unsold through the next year before a buyer purchased the property. The sales commission was paid lo XYZ Real Estate Inc. A lawsuit was filed by ABC Realty alleging the owner entered into an oral listing agreement with the firm, and as a result ABC is seeking commission payment based on procuring cause. Which outcome is most likely to result should this case go to mediation?

A - No commission is to be paid due to procuring cause.

B - The entire commission is due to XYZ Real Estate Inc.

C - The entire commission is due to ABC Really.

D - A cooperative commission is due.

Question 2

A brokerage firm is holding an earnest money deposit in its trust account pending a closing that will not occur for at least a month. The broker/owner is short on funds and uses some of the earnest money deposit to cover his office rent. The broker knows he will have another closing in a week and can return the funds. Are the broker's actions legal, and why?

A - Yes; as long as the broker can return the funds prior to closing, no harm is done.

B - No; this is the illegal act of convergence and could result in loss of the broker's license

C - Yes; the broker could arrange for this temporary loan by getting permission from the seller.

D - No; this is the illegal act of conversion and could result in criminal penalties as well as loss of the broker's license.