Question

23. Real Estate Law
24. Rudolph and his real estate agent, Blitzen, enter into a listing agreement whereby Blitzen may list Rudolph’s property but Rudolph may also try to find a buyer. Blitzen finds Comet, a buyer who has enough cash to purchase the property and would like to purchase the property today. One day later, Rudolph’s friend, Donner, offers to purchase the property for five thousand dollars more than the listing price. Why would Blitzen be able to get a commission on the sale if Rudolph sells to Donner?
    1. The listing agreement is an exclusive agreement and therefore Blitzen does not have to prove procuring cause.
    2. The listing agreement is an exclusive agreement and Blitzen would be able to prove procuring cause.
    3. The listing agreement is an open agreement, but Blitzen wouldn’t have to prove procuring cause.
    4. The listing agreement is an open agreement, but Blitzen would be able to prove procuring cause.

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Answer 1

Blitzen would be able to make the commission on the sale of the property if Rudolph sells it to Donner in case they had an exclusive listing agreement. An exclusive listing agreement is defined as a real state agreement in which an already specified agent has the right to make the commission if property sells regardless of the fact of how the buyer was found or who procured the buyer to buy the property. An open listing agreement, on the contrary, does not involve providing the commission to the agent if the agent is not the sole reason for the sale of the said property. Hence, an exclusive listing agreement between Blitzen and Rudolph allows Blitzen to make the commission and he does not have to prove to procure cause as eligibility. Therefore, the correct option is (a).