If a seller refuses to sign an offer that is below the list price, is a commission due?

Study for the North Carolina Post Licensing 301 Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your test!

A commission is typically due only when there is a binding agreement in place regarding the sale of the property, which means that the seller must accept and sign an offer for a contract to be formed. If a seller refuses to sign an offer that does not meet their list price, it indicates that there is no agreement on the terms of the sale, which includes the price. Since a commission is contingent on the completion of a sale or an accepted offer, it would not be owed in this situation until both the buyer and seller agree on the terms. Thus, until the seller signs an agreement that reflects a price that both parties accept, the commission is not considered due.

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