38. An owner lists with Broker A but then sells to a buyer found by Builder B. Which statement is true?
Answer: A
Broker A is entitled to a commission.
In this scenario, Broker A is entitled to a commission because they were the listing broker who represented the owner. Even though the buyer was found by Builder B, Broker A's role in listing the property establishes their right to compensation upon the sale.
A) Broker A is entitled to a commission.
This option is correct as Broker A was the agent who had the listing agreement with the owner. According to real estate practices, a broker retains the right to a commission when they successfully facilitate the sale of a property, regardless of who finds the buyer, provided the sale occurs during the listing period.
B) Builder B is entitled to full commission.
This option is incorrect because Builder B, who found the buyer, does not have an entitlement to full commission unless there is a specific agreement stating otherwise. Builder B's involvement does not negate Broker A's entitlement to commission based on their listing agreement with the seller.
C) Broker A must share commission with Builder B.
This option is also incorrect. While it is possible for brokers to negotiate a shared commission arrangement, there is no requirement for Broker A to share their commission with Builder B in the absence of such an agreement. Broker A's right to commission is established by their contractual relationship with the seller.
D) The seller may pay the commission to Builder B.
This option is misleading. Although the seller could choose to pay Builder B, it does not negate Broker A's right to commission. The seller is obligated to pay the commission to Broker A as per their listing agreement unless there is a separate agreement made with Builder B.
Conclusion
Broker A is definitively entitled to a commission due to their contractual relationship with the seller, which is a standard practice in real estate transactions. The other options misinterpret the rights of the brokers involved and fail to recognize the binding nature of the listing agreement between Broker A and the seller. Therefore, only Option A accurately reflects the commission entitlement in this scenario.