Question 62

Principal broker B will earn the full commission if the buyer performs.

In this scenario, since the seller has entered into an open listing with both Principal broker A and Principal broker B, Principal broker B is entitled to the full commission if the buyer he produced is ready, willing, and able to close on the seller's home.

A) Principal broker B must call Principal broker A to present the offer.

This statement is incorrect because under an open listing agreement, there is no requirement for Principal broker B to notify Principal broker A about the offer. Each broker operates independently, and the seller is not obligated to only work through one broker.

B) Principal broker B will earn the full commission if the buyer performs.

This statement is correct. Since Principal broker B was the one who produced a buyer ready and willing to purchase the home, he is entitled to the full commission, as the seller is not restricted to only one broker in an open listing scenario.

C) Principal broker A and Principal broker B will split the commission upon closing.

This is incorrect because in an open listing, the broker who brings the buyer who successfully completes the transaction earns the full commission. There is no automatic commission split between the brokers.

D) The seller is required to pay a commission to Principal broker A upon closing.

This statement is incorrect as well. The seller is only obligated to pay a commission to the broker who successfully completes the sale. If Principal broker B brings a buyer that closes the transaction, only he would be entitled to the commission.

Conclusion

The correct answer is that Principal broker B will earn the full commission if the buyer performs, as he successfully brought a buyer to the transaction. All other options fail because they misunderstand the nature of open listings, which allow brokers to operate independently without commission sharing unless specified otherwise by the seller.