A seller, acting as a private individual, signs an exclusive listing agreement with a brokerage for their residential property. The salesperson meticulously explains all aspects of the agreement, including the holdover period and commission structure. During the holdover period, the seller, without the knowledge or involvement of the brokerage, enters into a private agreement of purchase and sale with a buyer who was originally introduced to the property by the salesperson during the active listing term. Which of the following statements accurately describes the brokerage's entitlement to commission?

Question: A seller, acting as a private individual, signs an exclusive listing agreement with a brokerage for their residential property. The salesperson meticulously explains all aspects of the agreement, including the holdover period and commission structure. During the holdover period, the seller, without the knowledge or involvement of the brokerage, enters into a private agreement of purchase and sale with a buyer who was originally introduced to the property by the salesperson during the active listing term. Which of the following statements accurately describes the brokerage's entitlement to commission?

Answer options:

• The brokerage is not entitled to commission as the agreement of purchase and sale was executed privately and outside the active listing term. ✅ The brokerage is entitled to full commission because the buyer was introduced during the active listing term and the sale occurred within the holdover period.
• The brokerage is entitled to half the agreed-upon commission as the salesperson's effort led to the introduction, but the finalization was private.
• The brokerage is entitled to recover marketing expenses only, as no services were rendered in finalizing the private sale during the holdover period.

Correct answer: The brokerage is entitled to full commission because the buyer was introduced during the active listing term and the sale occurred within the holdover period.

Explanation: According to typical exclusive listing agreements and REBBA 2002 principles, if a buyer is introduced to the property by the listing brokerage during the term of the agreement, and a sale occurs to that buyer within the specified holdover period, the brokerage is generally entitled to their full commission, regardless of whether they were involved in the final negotiations of the private sale. This protects the brokerage's efforts.