Owners list their house with BBT Realty. A salesperson for AAA Realty obtains permission from BBT Realty to show the property. If the salesperson from AAA Realty presents an offer that the sellers accept, the sellers would pay the commission to the:

Rationale

Principal broker of BBT Realty.

When a property is listed with a real estate agency, the commission for any sale is typically paid to the principal broker of the agency that holds the listing. In this case, since BBT Realty is the listing agency, the commission would be paid to their principal broker upon the successful sale of the property.

A (Salesperson of BBT Realty) YOUR ANSWER

The salesperson of BBT Realty may have listed the property, but commissions are not paid directly to salespersons. Instead, the commission is paid to the principal broker of the agency, who then distributes the appropriate share to the salesperson based on their agreement.

B (Principal broker of BBT Realty) CORRECT

This is the correct choice, as the principal broker of BBT Realty is the entity that receives the commission from the sellers when the property is sold. As the listing broker, BBT Realty has the contractual right to the commission from the sale.

C (Salesperson of AAA Realty) YOUR ANSWER

Although the salesperson from AAA Realty obtained permission to show the property, they are working on behalf of their own agency, which does not have a listing agreement for this property. Therefore, the commission would not be directed to them.

D (Principal broker of AAA Realty) YOUR ANSWER

Similar to the previous choice, the principal broker of AAA Realty would not receive the commission because AAA Realty is not the listing agency. The commission flows to the principal broker of the agency that holds the listing agreement, which is BBT Realty.

Conclusion

In real estate transactions, commissions are generally paid to the principal broker of the agency that has the listing agreement with the sellers. In this scenario, since BBT Realty is the listing agency, the principal broker of BBT Realty will receive the commission when the property is sold, regardless of who brings the buyer to the table. This structure ensures that the listing broker is compensated for their role in facilitating the sale.

Owners list their house with BBT Realty. A salesperson for AAA Realty obtains permission from BBT Realty to show the property. If the salesperson from AAA Realty presents an offer that the sellers accept, the sellers would pay the commission to the:

Principal broker of BBT Realty.

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