When a seller refuses to pay a broker's commission and the broker does not pursue legal action, what option does the sales agent have?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

In this situation, the sales agent has the option to seek recourse through legal channels if the seller refuses to pay the broker's commission and no legal action has been pursued by the broker. The correct choice is aimed at addressing the financial relationship that exists between the sales agent and the broker. The sales agent, who typically has a contractual relationship with the broker, may choose to file a lawsuit against the broker if they believe that the broker has not fulfilled their obligations under the terms of an agreement.

This pathway allows the sales agent to protect their interests and seek recovery for any commissions owed to them, assuming that there is a valid claim based on their arrangement. It's essential for agents to evaluate their contracts and any agreements they have in place to determine the best course of action available to them in situations where compensation is in dispute.

Other options, such as negotiating directly with the seller or waiting for them to change their mind, may not effectively resolve the issue of unpaid commission, especially if the seller is unwilling to engage further in discussions. Filing a lawsuit against the broker would not be applicable, as the disagreement centers around the seller's refusal to pay rather than a conflict with the broker. Therefore, pursuing legal action against the broker is a more relevant and direct

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