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Question:
Broker Bishop and Broker Bailey enter into an open listing to sell Seller Sanders’ property. Bailey locates Buyer Hernandez who may be interested in the property and conducts an open house tour with Hernandez. Hernandez asks about the tax aspects of acquiring the property, and Bailey answers to the best of his knowledge, letting Hernandez know he is not a tax expert and his representations are based on his knowledge of real estate. Hernandez gets cold feet and decides not to submit an offer. One month later, Bishop comes in contact with Hernandez and conducts a second open house of Sanders’ property. Informed by both open houses and his discussion with both brokers, Hernandez submits an offer to purchase through Bishop. How is Sanders to properly handle payment of the commission?
A
The full amount of the commission is paid to Broker Bishop only since he ultimately was the producing cause of the sale.
explanation
Regardless of the extent of real estate activity conducted by other brokers, only the broker who was the procuring cause of the sale is entitled to a fee under an open listing. Note the extent to which the question comments on the other activities performed by Broker Bailey, the first broker who was not the procuring cause of the sale. This is irrelevant to the collection of a fee. Once the question makes it clear the brokers are operating under an open listing, the only fact that controls is which broker was the procuring cause.
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