If a seller withdraws an acceptance of a buyer's offer after the seller signed, what is the status of the broker's commission?

Prepare for the Hawaii Real Estate Salesperson Exam effectively. Study with our engaging quiz featuring flashcards and multiple-choice questions, complete with hints and detailed explanations. Get ready to ace your exam with confidence!

The correct answer indicates that the broker is entitled to collect a commission in this scenario. This is based on the principle that once a seller signs an acceptance of a buyer's offer, a binding contract is created. The broker typically earns a commission once a sale is agreed upon, provided that they have fulfilled their duties in bringing the buyer and seller together.

Even if the seller later withdraws their acceptance of the offer, the broker's role in facilitating the agreement has already occurred. The commission is often considered earned at the moment a contract is valid, regardless of whether the deal ultimately closes, especially if the broker acted in good faith and fulfilled their obligations.

In this context, factors such as the specifics of the broker's agreement with the seller and local real estate laws may also play a role, but as a general principle in real estate practice, the broker is entitled to compensation for their services as long as they caused the seller to accept the buyer's offer initially. Thus, the broker has a valid claim to the commission based on the actions that took place while the contract was in effect.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy