Broker's Commission Laws Quiz

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Questions and Answers

Which statement about a broker's commission is TRUE?

The seller and the buyer may rescind the sale, thus relieving the seller of the obligation to pay the broker's commission.
A listing agreement signed only by the seller is unenforceable.
Action for the broker's commission must be brought within four years of earning the commission. (correct)
The broker's commission earned but not paid creates a lien on the seller's property.

A buyer can rescind the sale and relieve the seller from paying the broker's commission.

True (A)

What is the maximum time period within which action for a broker's commission must be initiated?

four years

A listing agreement signed only by the ______ is unenforceable.

<p>seller</p> Signup and view all the answers

Match the aspects of broker commissions with their corresponding statements:

<p>Statute of limitations = Four years Rescind sale = Relieves seller of commission obligation Enforceability of listing agreement = Requires both seller and broker signatures Unpaid commission = May create a lien on seller's property</p> Signup and view all the answers

Flashcards

Statute of Limitations

The legal time limit within which a lawsuit can be filed.

Listing Agreement

A legal agreement between a real estate broker and a seller to list and market a property.

Broker's Commission

The amount of money paid to a real estate broker for their services in completing a sale.

Rescission of Sale

The right of a seller to cancel a sale agreement before it's finalized.

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Lien

A legal claim against a property to secure payment of a debt.

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Study Notes

Broker's Commission

Action to claim a broker's commission must be taken within four years of earning it, according to the statute of limitations.
A seller and buyer may cancel a sale, which removes the seller's obligation to pay the broker's commission.
A listing agreement only signed by the seller is not legally binding.
A broker's unpaid commission does not create a lien on the seller's property.