Utah Law School Practice Exam

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What could happen if a selling broker does not sell through the listing broker in an exclusive right to sell listing?

Dual disposition.

Double commission.

In the context of an exclusive right to sell listing, when a selling broker does not sell through the listing broker, the consequence is typically the potential for a double commission scenario. An exclusive right to sell means that the listing broker has the sole right to earn a commission from the sale of the property, regardless of who brings the buyer. If the selling broker directly sells the property without involving the listing broker, they could be put in a position where both brokers may claim a right to a commission, leading to a situation where the seller might be liable to pay commissions to both brokers. Hence, this situation is where "double commission" comes into play, as it raises questions about how commissions will be divided or if a seller could be charged by both parties for the same transaction.

Other options do not specifically address the implications of bypassing the listing broker in an exclusive right to sell arrangement. Dual agency relates to representation and could only arise if one broker acted for both parties, which is a different situation. Dual disposition and double contract do not apply to the context of commission structures in real estate transactions.

Dual agency.

Double contract.

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