Question
Larry Licensee entered a listing agreement with Vera Vendor and subsequently obtained an offer for Vera's property from Paulina Purchaser. Delighted to find a buyer
Larry Licensee entered a listing agreement with Vera Vendor and subsequently obtained an offer for Vera's property from Paulina Purchaser. Delighted to find a buyer so soon, Vera immediately accepted the offer. One week before the date of completion, Terry Takeover approached Larry with an offer to buy the property from Paulina at a higher price. Paulina accepted Terry's offer and Larry, without informing Vera, arranged the resale once the original transaction closed. Vera has just found out about these dealings and is refusing to pay Larry his commission. Which of the following statements is / are TRUE?
- Larry can successfully sue Vera for his commission because he satisfied his obligation under the listing agreement by selling the property.
- Larry was obligated to inform Vera of Terry's offer.
- If Larry brings a court action against Vera, he will have the burden of proving that he fulfilled his duties under the listing agreement and under common law.
- In no situation would Larry be able to receive two commissions from the consecutive sale of the same property without breaching the Real Estate Services Act.
- (1)A only
- (2)B only
- (3)B and C only
- (4)C and D only
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