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Annie Agent knows that Selina Seller is thinking of selling her home in Los Angeles. Annie and Selina enter into an exclusive agency listing agreement with a commission of 6%. They both agree that the listing price will be $599,900. Selina is up to date on her mortgage and all other required payments related to the property. She has owned the property in Fee Simple Absolute for more than the last 5 years and plans to transfer her all of interest in the property. She will give the buyer a general warranty deed. Before meeting with Annie, Selina told her friend Bob that she was selling her home and Bob stated that he was interested in potentially purchasing it. Annie has a friend Jarrod who is a salesperson working under a different broker. Jarrod and Annie are members of reciprocal MLS groups. Their MLS groups each require a listing broker, to pay a cooperating broker of a reciprocal MLS, the commission amount stated in the listing. Jarrod has an exclusive agency representation agreement with Bob to represent him in the purchase of a home. With Annie and Jarrod’s assistance, Selina enters into a purchase agreement with Bob, the transaction closes, and Bob now occupies the home. Selina subsequently refuses to pay a commission. After Bob moves in, Prentice knocks on the door. Bob answers and Prentice says, “Who the heck are you?! Who changed my locks?!? Get out of my place!” “Your place? I just bought this place a few weeks ago. See, here’s my deed. It’s even recorded,” replied Bob. “Here’s my deed. It’s recorded too.” Discuss all of the legal issues. To get you started, here are few questions that touch on some, but not all of the issues. Is Annie entitled to a commission payment from Selina? Who owns the property? Are any warranties breached? Is Jarrod entitled to a commission payment from Selina? Annie? Bob? These are NOT all of the issues. If there are other issues, (hint-there are additional issues) you need to spot them and discuss them as well. A good way to organize your paper is to address one issue at a time. State the issue or legal question you’re trying to answer, give the law or rule that applies to that issue, then thoroughly analyze the issue, fully explain your answer, showing your understanding of real estate, law, and contract principles. The repeat for the next question/issue until you’ve addressed them all. in 400-1000 words. Be thorough. Make sure you are explaining the reasons to your conclusions and incorporating the legal and real estate principles that we have learned.


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