PSI Oklahoma Real Estate Practice Test

Why is the buyer required to pay the original realtor's commission after a contract expires?

1. The buyer had a verbal agreement

2. Exclusive Right Agreement

3. The buyer signed a waiver

4. The buyer is legally obligated to pay all realtors

The correct answer is: Exclusive Right Agreement

The buyer is required to pay the original realtor's commission after a contract expires primarily because of the Exclusive Right Agreement. This type of agreement ensures that the listing agent is entitled to their commission regardless of whether the property is sold during the term of the agreement or shortly thereafter. The contract typically stipulates that the agent earns a commission if the property is sold to a buyer who was introduced to the property during the active listing period, regardless of when the sale occurs. An Exclusive Right Agreement creates a fiduciary relationship between the seller and the realtor, giving the realtor the exclusive right to represent the seller in the sale of the property. This means that even if the contract has expired, if a buyer who was shown the property during that contract period proceeds to buy it, the realtor is still entitled to their commission. This provides a strong incentive for realtors to invest effort into marketing and selling the property, knowing they will be compensated for their work. Other choices do not accurately capture the nature of the obligation; a verbal agreement lacks the legal enforceability of a written contract, a waiver refers to the relinquishment of a right but is not typically used in commission discussions, and the statement about the buyer being legally obligated to pay all realtors is too broad