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Ellen and Sadie signed an agreement to list Sadie's condo for sale. After the contract was signed, Sadie's father, Grant, offered to pay Ellen's commission as a housewarming present. Sadie's mom and stepdad, Linda and Rick, also chipped in. Who is Ellen's client?
Suggested Answer: D
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Regardless of who pays the commission, the client is the person named in the agency agreement---in this case, Sadie, the property owner.
The Maryland Real Estate Brokers Act defines the client as the party with whom the broker or salesperson has an agency relationship, not necessarily the one providing compensation.
Third-party payments do not alter the contractual relationship or fiduciary duties.
Maryland 60-Hour Principles and Practices of Real Estate Pre-Licensing Course -- ''Law of Agency'' Module
Md. Business Occupations and Professions Article 17-530 -- Agency Relationship and Duties.
31 comments · newest first
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Christiane
6 months ago
Exactly! Sadie is the seller, so she's Ellen's client.
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Georgeanna
6 months ago
I feel like the client is always the one who lists the property.
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Erick
6 months ago
True, but they didn't sign anything. Sadie did.
CH
Christiane
6 months ago
But what about Linda and Rick? They are involved too.
RE
Reynalda
6 months ago
Yeah, I agree. Grant is just paying the commission.
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Charlie
7 months ago
I think it's Sadie. She's the one who signed the agreement.
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Phillip
7 months ago
Yeah, but the contract is what matters here.
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Verona
7 months ago
Wait, so Grant paying the commission doesn't change anything?
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Tammy
8 months ago
I agree, it's Sadie since she signed the contract.
BI
Billy
8 months ago
D) Sadie. The question states she signed the agreement, so she's clearly the client here.
LO
Lorean
8 months ago
I bet Grant's just trying to get on Ellen's good side so he can score a date. Smooth move, Gramps!
IL
Iluminada
8 months ago
This is a tough one. I'm going to go with D) Sadie, since she's the one who signed the agreement.
MA
Marylyn
8 months ago
B) Linda. She's also chipping in, so she must be a client too.
LA
Laurena
8 months ago
A) Grant. He's the one paying the commission, so he must be the client.
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Johana
9 months ago
I feel like this is similar to another question we had about who the client is when multiple parties are involved. I think it still points to Sadie being the client.
IZ
Izetta
9 months ago
I'm a bit uncertain here. Does the fact that Grant and the others are paying the commission change who Ellen represents?
KI
Kiera
9 months ago
I remember a practice question about agency relationships, and it seems like the person who signed the contract is usually the client. So, I would go with Sadie.
DO
Dortha
9 months ago
This seems straightforward to me. The agreement was signed between Ellen and Sadie, so Sadie must be Ellen's client, regardless of who is paying the commission. I'm confident I can get this one right.
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Nickolas
9 months ago
I've got a strategy for this - I'll start by identifying the parties involved, then determine who has the contractual agreement with Ellen. That should point me to the right answer.
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Marylou
9 months ago
I'm a bit confused by this question. I'm not sure if the fact that other people are involved in paying the commission changes who the actual client is. I'll have to think it through step-by-step.
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Ilda
10 months ago
I think Ellen's client is Sadie since she signed the agreement, but I'm not entirely sure how the gifts from the parents affect that.
VA
Valentine
10 months ago
D) Sadie. Duh, it's clearly stated that Sadie signed the agreement with Ellen.
AD
Adrianna
10 months ago
Ellen's client is definitely Sadie.
RU
Rupert
10 months ago
I thought the one paying the commission was the client!
BL
Blair
11 months ago
Okay, the key here is figuring out who Ellen's client is, based on the information provided. I'll need to think through the relationships and responsibilities.
MA
Magda
11 months ago
Hmm, this seems like a tricky one. I'll need to carefully consider the details about who is involved in the agreement and the commission payment.
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Jerry
5 months ago
I agree, Sadie is definitely Ellen's client here.
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Tegan
5 months ago
Exactly! Sadie is the one listed in the contract.
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Tayna
5 months ago
Yeah, but Grant paying the commission is interesting.
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Vivan
6 months ago
I think it’s Sadie. She signed the agreement.
DO
Doug
10 months ago
True, but the client is the one who signed, right?