Problem
Can you Receive a Commission as a Listing Agent, Even if the Home Does Not Close?
A real estate broker earns his or her commission when they are the procuring cause of an offer to purchase property. The offer must come from a 'ready, willing, and able' purchaser. That offer must match or exceed the seller's list price with acceptable sale terms.
But this rule has implications that can be quite undesirable for sellers. If a commission is earned by the mere fact of procuring the right kind of offer, then it does not matter whether a deal is actually consummated.
If the buyer's offer matches the seller's asking price (and is unconditional), then the broker's commission is earned, whether or not the seller accepts the offer. The seller is free to change his mind and decide not to sell, but that seller nevertheless will be liable to his broker for a commission. See, e.g., East Kendall Ins., Inc. v. Bankers Real Estate Partners, 742 So. 2d 302 (Fla. Dist. Ct. App. 1999).
Task
Pretend that a brother and sister wish to sell a ranch in El Dorado County. A broker takes the listing and then finds an all-cash buyer. Suddenly, the brother wishes to consummate the sale, but the sister is having second thoughts, and refuses to sign closing documents, even though she originally agreed that the list price was acceptable.
What should the escrow company do? What should the brother do? What about the sister? What about the listing agent? Can you google search for similar case and post it here? Try and find something as close to this situation as possible, though any conflict between seller and listing agent will do. Find a good story! The one I just told is true. The brother had been in my real estate class!