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

sellers would pay the commission to the principal broker of BBT Realty.

In real estate transactions, the commission is typically paid to the broker representing the listing agency, which in this case is BBT Realty. Since the salesperson from AAA Realty is acting on behalf of BBT Realty with permission, the commission goes to the principal broker of BBT Realty as they hold the listing agreement.

A (salesperson of BBT Realty) YOUR ANSWER

While the salesperson of BBT Realty may be involved in the transaction, the commission is not paid directly to them unless specified in a different agreement. Instead, commissions are generally paid to the broker, not individual salespersons, to ensure proper distribution according to company policy.

B (principal broker of BBT Realty) CORRECT

The principal broker of BBT Realty is the correct answer because they are the party with whom the sellers have a contractual agreement regarding the listing. Commissions are typically paid to the broker based on the terms outlined in the listing agreement, which establishes their right to receive payment upon a successful sale.

C (salesperson of AAA Realty) YOUR ANSWER

The salesperson of AAA Realty does not receive the commission because they are not the listing agent. Their role is to facilitate the sale by presenting an offer, but the commission payment is directed to the brokerage that holds the listing agreement, which is BBT Realty.

D (principal broker of AAA Realty) YOUR ANSWER

The principal broker of AAA Realty is also not entitled to the commission in this situation, as they are not the broker of record for the property being sold. Since the listing agreement is with BBT Realty, the commission is contracted to flow to the principal broker of that agency.

Conclusion

In real estate transactions, commissions are paid to the brokers who hold the listing agreements. In this scenario, since the owners listed their house with BBT Realty, the commission from the accepted offer is due to the principal broker of BBT Realty. Understanding these roles clarifies the flow of commission payments in real estate transactions and ensures compliance with agency agreements.

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:

sellers would pay the commission to the principal broker of BBT Realty.

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