Question

Real Estate Law

1. Bob wants to sell his home and enters into a listing agreement with Rapheal, a real estate agent, whereby Rapheal is the only person who can sell Bob’s home. Rapheal finds Curtis, a buyer who has enough cash to purchase the property and would like to purchase the property today at the listing price. One day later, Bob’s friend, Dennis, offers to purchase the property from Bob for five thousand dollars more than the listing price. Why would Rapheal be able to get a commission on the sale if Bob sells to Dennis?
   1. The listing agreement is an exclusive agreement and therefore Rapheal does not have to prove procuring cause.
   2. The listing agreement is an exclusive agreement and Rapheal would be able to prove procuring cause.
   3. The listing agreement is an open agreement, but Rapheal would be able to prove procuring cause.
   4. The listing agreement is an open agreement, but Rapheal wouldn’t have to prove procuring cause.

Answer 1

Correct option: (C)

Reason: Although the listing agreement was open agreement to sell the property, Raphael could still prove a procuring cause as he was able to bring a prospective buyer for the property.