Texas Crammer Practice Exam

What is the broker entitled to if a property owner sells their property to a family member shortly after a listing is signed?

1. No commission

2. A commission

3. Partial commission

4. A finding against the seller

The correct answer is: A commission

A broker is generally entitled to a commission for their services in facilitating a sale, as long as they have a valid listing agreement in place. In Texas, if the property owner signs a listing agreement with a broker, they are agreeing to pay the broker a commission if the property sells during the listing period, regardless of who the buyer is. This includes sales to family members or any other parties. The rationale behind this is that the broker has invested time and resources into marketing the property and negotiating the terms of the sale. Even if the owner ultimately sells to someone they know without the broker's direct involvement at that stage, the listing agreement typically stipulates that the broker is entitled to a commission if the sale occurs within the term of the agreement. This agreement protects the broker's interests, ensuring they are compensated for their efforts regardless of the final buyer's relationship to the seller. If the property sells to a family member during the listing contract period, the broker can rightfully claim their commission as per the terms of the agreement.