Similar exam prep questions regarding license expirations

[jsmith@mailinator.com]

In your downloadable exam prep program I found three questions very similar, but one of them has a completely answer….

Q: A listing’s agent license expires on March 31. On April 3 he sells the owner’s house. What should the seller do?

A: Refuse to pay the commission

However, the other…

Q: After a contract is written but two days before closing a broker’s license expire. What should the seller do?

A: Pay the commission

Why if in both the license expire before the closing?
Could you please help me?

[brett]

Thanks for your question.

The key to this subject is that a sales associate must be licensed WHEN HE SELLS THE PROPERTY, not when it closes. So in the first question, the sales associate sold the house after the license expired, so the seller should refuse to pay the commission.

In the second question, the contract was written when the broker had a license, but closed after it expired. He had the license before he sold it, so the seller much pay the commission.

Hope this helps.