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April 2003
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That’s my commission

There’s nothing worse than someone else staking a claim to a commission you believe is yours. Knowing how these disputes are settled is one way to prepare yourself for such an unpleasant event. Here are some questions to test your knowledge.

The answer follows each question, so scroll slowly if you wish to read a question before revealing the answer.

 

 

 

 

 

 

 

 

  1. Commission disputes are settled on the basis of what concept?

    a) right of domain
    b) procuring cause
    c) finders keepers
    d) cause and effect


    b.

     

  1. Most procuring-cause disputes are determined in what type of proceedings?

    a) arbitration
    b) ethics hearing
    c) municipal court
    d) mediation


    a .

     

  1. True or false? Suing another REALTOR® for
    a commission is a violation of the Code of Ethics.


    True, except in special circumstances.

     

  1. True or false? REALTORS® can pursue litigation regarding a commission without violating the Code of Ethics if all parties to a dispute give written notice to the board that they wish to waive their right to arbitrate.


    True.

     

  1. True or false? A cooperating broker’s agency relationship to the buyer determines procuring cause.


    False.

     

  1. True or false? When a REALTOR® is acting solely as a principal in a transaction, he is not obligated to arbitrate disputes with other REALTORS® absent a specific written agreement to the contrary.


    True.

     

  1. The legal limit for relocation-company referral fees is:

    a) 50%
    b) no limit
    c) 35%
    d) $28,350


    b.

     

  1. True or false? REALTORS® can receive compensation from the seller and the buyer in the same transaction if they have consent from all parties.


    True.

     

  1. True or false? Rules of thumb are valuable in determining who is entitled to a commission.


    False.

     

  1. A grievance committee or arbitration panel can terminate arbitration due to:

    a) legal complexity
    b) the amount involved
    c) answers a and b
    d) none of the above


    c .

 

Photo © Artville.

 

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