Michigan Real Estate Exam Practice Question
An owner lists with Broker A but then sells to a buyer found by Builder B. Which statement is true?
Correct Answer: A
Rationale: Broker A is entitled to a commission because the seller engaged their services to market the property, establishing a contractual obligation. Even though the buyer was found by Builder B, Broker A fulfilled their role in the transaction by listing the property.
Option B is incorrect; Builder B is not entitled to a commission unless there is a separate agreement with the seller.
Option C is misleading, as Broker A's entitlement to commission does not automatically require sharing with Builder B unless previously agreed upon.
Option D is also incorrect; while the seller can choose whom to pay, it does not negate Broker A's entitlement based on their listing agreement.
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