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

Rationale

the principal broker of BBT Realty.

In a real estate transaction where a property is listed with BBT Realty, the commission for a successful sale is paid to the principal broker of the listing agency, which in this case is BBT Realty. This is because the listing agreement establishes BBT Realty as the agency representing the sellers.

A (salesperson of BBT Realty) YOUR ANSWER

The salesperson of BBT Realty does not receive the commission directly; rather, it is the principal broker who is entitled to the commission as per the terms of the listing agreement. The salesperson acts under the broker's authority but does not directly receive payment from the sellers.

B (principal broker of BBT Realty) CORRECT

The principal broker of BBT Realty receives the commission because they are the designated representative for the sellers under the listing agreement. The brokers are responsible for managing the transaction and ensuring compliance with relevant laws and regulations.

C (salesperson of AAA Realty) YOUR ANSWER

While the salesperson from AAA Realty may have facilitated the showing and presentation of the offer, they are not entitled to the commission paid by the sellers. Their role is typically compensated through a commission split with their own principal broker, not directly from the sellers.

D (principal broker of AAA Realty) YOUR ANSWER

The principal broker of AAA Realty would not receive the commission since AAA Realty is not the listing agency. The commission is only payable to the principal broker of the agency that holds the listing agreement, which is BBT Realty in this scenario.

Conclusion

In real estate transactions, the principal broker of the listing agency receives the commission from the sellers. In this case, since the property is listed with BBT Realty, the sellers would pay the commission to the principal broker of BBT Realty, reflecting the contractual agreement established at the outset of the listing. Understanding this structure helps clarify the flow of commissions in real estate transactions and reinforces the importance of agency relationships.

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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