Arizona Real Estate License Practice Exam

When a seller rejects a full-price offer during the listing period, the outcome regarding the commission is nuanced. The listing agent typically has a contractual right to a commission if they have presented a valid offer in compliance with the terms of the listing agreement, regardless of whether the offer was accepted by the seller. Since the listing agent has fulfilled their duty by securing a full-price offer, the seller may indeed be obligated to compensate the listing agent for their services rendered, even if the transaction does not proceed to closing.

It's important to note that the obligation to pay the commission is typically outlined in the listing agreement, which establishes the terms under which the agent is entitled to their commission. This is rooted in the premise that commission is earned once a buyer capable of purchasing the property at the agreed price is found, as long as the listing period is still active.

Other options imply conditions that are not generally applicable. For example, stating that the buyer is not entitled to a commission overlooks the distinct roles and agreements within the transaction. Indicating that no commission is owed until the sale closes misinterprets how commissions are structured in real estate transactions, as they are often considered earned upon securing a buyer, not dependent on closing. Lastly, suggesting the listing contract is automatically terminated