31. A licensee has an exclusive right-to-sell listing on Smith's store that entitles him to $4,000 in compensation when the store is sold. The licensee also has a similar type of listing on Jones's store that promises $5,000 in compensation when the store is sold. If the licensee arranges an exchange of the above two properties, with the informed consent of both parties, how much compensation, if any, will he receive?
Answer: C
The licensee will receive $9,000 in compensation.
When the licensee arranges an exchange of the two properties, he is entitled to the compensation amounts from both listings, totaling $9,000.
A) $4,000
This option reflects only the compensation from Smith's store. Since the licensee is involved in an exchange that includes both properties, he is entitled to the total compensation from both listings, making this option incorrect.
B) $5,000
This option represents only the compensation from Jones's store. Similar to Option A, this does not account for both listings involved in the exchange, thus it does not reflect the total compensation the licensee would receive.
C) $9,000
This option correctly sums the compensation amounts from both listings, $4,000 from Smith's store and $5,000 from Jones's store. Since both properties were exchanged with the informed consent of both parties, the licensee is entitled to the full compensation from both transactions.
D) none, because the properties were exchanged, not sold
While it is true that the properties were exchanged, it does not negate the licensee's right to receive compensation from both listings. The terms of the listings still apply, so this option is incorrect as it misinterprets the nature of the compensation due.
Conclusion
The correct answer is $9,000, as the licensee retains the right to receive compensation from both the exclusive listings despite the properties being exchanged. Options A and B fail to consider the total compensation from each listing, while Option D incorrectly asserts that no compensation is warranted due to the nature of the exchange. Thus, only Option C accurately reflects the situation.