Under what condition would a listing firm not receive a commission in an exclusive right to sell residential listing contract?

Under what condition would a listing firm not receive a commission in an exclusive right to sell residential listing contract?

• A. The property is sold within 30 days
• B. One owner sells the property under a divorce judgment
• C. The seller withdraws the property listing
• D. The property is sold for less than asking price

Answer: (B)

In an exclusive right to sell residential listing contract, the listing firm typically earns a commission when the property is sold, regardless of who sells it or the circumstances surrounding the sale, as long as the agreement is still in effect. The correct answer indicates that there are specific legal conditions, such as a divorce judgment, that might void the obligation of the listing firm to earn a commission. When one owner sells the property due to a divorce judgment, this sale is often not in violation of the contract but may be limited by the terms agreed upon during the divorce proceedings, which can prevent the listing firm from receiving a commission. In contrast, the other options listed do not terminate the listing agreement or undermine the circumstances of sales such that a commission would be withheld. For instance, if the property sells within 30 days, or for less than the asking price, or if the seller decides to withdraw the property from the market, the listing firm generally still has a right to the commission, as these scenarios typically do not negate the contractual agreement established in the exclusive right to sell. Thus, option B stands out because it presents a legal condition that directly affects commission entitlement.

In an exclusive right to sell residential listing contract, the listing firm typically earns a commission when the property is sold, regardless of who sells it or the circumstances surrounding the sale, as long as the agreement is still in effect. The correct answer indicates that there are specific legal conditions, such as a divorce judgment, that might void the obligation of the listing firm to earn a commission.

When one owner sells the property due to a divorce judgment, this sale is often not in violation of the contract but may be limited by the terms agreed upon during the divorce proceedings, which can prevent the listing firm from receiving a commission. In contrast, the other options listed do not terminate the listing agreement or undermine the circumstances of sales such that a commission would be withheld.

For instance, if the property sells within 30 days, or for less than the asking price, or if the seller decides to withdraw the property from the market, the listing firm generally still has a right to the commission, as these scenarios typically do not negate the contractual agreement established in the exclusive right to sell. Thus, option B stands out because it presents a legal condition that directly affects commission entitlement.