Difficulty: Easy

Average Score: 100%

Under what circumstances may a licensee collect a commission from a seller AFTER the listing agreement has expired?

Rationale

There are no circumstances under which this is acceptable.

Once a listing agreement has expired, a licensee is no longer entitled to collect a commission from the seller. The contractual relationship between the licensee and the seller ceases to exist, meaning any commission claims based on that agreement are invalid.

A (If an amendment to that effect has been signed) YOUR ANSWER

An amendment to the listing agreement can only extend the terms of the original agreement while it is still in effect. Once the agreement has expired, no new terms can be applied retroactively to allow for commission collection, making this choice incorrect.

B (If the original listing has an automatic extension) YOUR ANSWER

While some listings may include automatic extension clauses, if the original listing has genuinely expired without any extension being invoked, the licensee cannot collect a commission. Automatic extensions must be activated before the expiration date to remain valid.

C (If the listing can be cancelled at any time) YOUR ANSWER

The ability to cancel a listing agreement at any time does not grant the licensee the right to collect a commission after expiration. If the agreement is canceled before expiration, the licensee may be entitled to a commission, but once expired, they lose that right regardless of the cancellation terms.

D (There are no circumstances under which this is acceptable) CORRECT

This choice accurately reflects the legal framework surrounding expired listings. After expiration, the licensee cannot collect a commission, as the contractual obligations have ended.

Conclusion

In real estate, the expiration of a listing agreement terminates the contractual relationship between the seller and the licensee, eliminating any entitlement to commissions. Without a valid agreement in place, there are no circumstances under which a licensee may collect a commission from a seller after the listing has expired, ensuring clarity and fairness in real estate transactions.

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