21. A couple wishing to purchase their first residence signs an exclusive buyer agency agreement with a real estate licensee in January. The agreement specifies that the buyers will work exclusively with the licensee, who will receive a commission if the couple purchases any property within six months of signing the agreement. The buyer agent devotes a whole week to showing the couple all listed properties in their price range and requested locations. While attending open houses on their own in February, the couple writes an offer on a home with another licensee. After closing, they receive a demand letter for commission payment from their exclusive buyer agent. What is the contractual obligation of the couple to the exclusive buyer agent
Answer: B
The couple must pay because the contract they signed with the exclusive buyer agent obligates them to do so.
The couple is legally bound to pay the exclusive buyer agent a commission due to the exclusive buyer agency agreement they signed. This agreement clearly states that the agent is entitled to a commission if the couple purchases any property within the specified duration.
A) They have no obligation because the exclusive buyer agent did not find the property they bought
This option is incorrect because the validity of the commission is not contingent upon the agent finding the specific property. The exclusive buyer agency agreement mandates payment to the agent regardless of whether they showed the property purchased.
B) They must pay because the contract they signed with the exclusive buyer agent obligates them to do so
This option is correct as it accurately reflects the contractual obligation established by the exclusive buyer agency agreement. The couple's commitment to work exclusively with the agent for a specified period obligates them to pay the commission regardless of who facilitated the property purchase.
C) They must pay half of the contract fee to each of the agents
This option is incorrect. The agreement does not stipulate that payments be divided between agents, especially since the couple had a binding contract with the exclusive buyer agent, which does not imply sharing fees with another agent involved in the transaction.
D) They have no obligation to pay because they did not use any services of the exclusive buyer agent
This option is also incorrect. The couple's obligation to pay the commission is not negated by the fact that they did not utilize the services of the exclusive buyer agent for the specific property purchase, as per the terms of their signed agreement.
Conclusion
The couple's legal obligation to pay the exclusive buyer agent is firmly established by the exclusive buyer agency agreement they signed, which specifies conditions for commission entitlement. Other options fail to recognize the binding nature of this contract, which ensures that the agent is compensated for their representation during the agreed timeframe, regardless of the circumstances surrounding the property purchase.