Question

Toni asked Adler, a real estate broker, exclusive agency to sell her farm house, and promised to pay 5% commission on the sale. Toni's friend, Deena, approached her to buy the farm house at $100,000 on 24th Nov 2010 and Toni decided to sell the farmhouse to Deena, entering into an agreement. On 1st Dec 2010 Alder found a buyer for the farmhouse who was ready to purchase the farmhouse at $105,000. However, the sale could not take place due to the prior agreement with Deena. What commission is Alder entitled to receive for this job

Answer 1

Answer: $0

Explanation:

Alder had an EXCLUSIVE AGENCY to sell the property of Toni.

An Exclusive Agency allows a seller to.sell the property their selves and not have to pay any commission to the broker which means that Toni can still sell the property herself and not have to pay Alder any commission.

Toni in selling to Deena, essentially found a buyer by herself and so will not need to pay Alder any commission.

Answer 2

Answer:

The amount of commission payable to Alder is $0

Explanation:

Even though Toni promised to pay Alder 5% commission sale of the farm house,Alder could not get the promised commission since the buyer ,Deena did not buy the farm house through Alder instead bought the farm house directly from the owner,Toni.

Toni later found a buyer that was willing to pay a higher amount,however the sale could not take place because the farm house has been sold to the first mover.