At closing, a sale doesn't go through because the seller's anticipated transfer to another city gets suddenly postpones, and the seller no longer wants to sell. Does the seller owe the listing agent a commission in this situation?
A. No, because the sale didn't close
B. No, because this was a circumstance outside the seller's control
C. Yes, because the seller won't provide marketable title, which is considered default.
D. Yes, unless the buyer and seller agreed to mutually cancel the transaction
Answer: C. Yes, because the seller won't provide marketable title, which is considered a default.
The misting agent has earned a commission if, after a suitable buyer agrees to buy, the sale fails to close and the seller is at fault. The seller's main responsibility regarding closing is to deposit into escrow a deed with marketable title. The seller failed to do that here.
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