Commission follows the effective cause of the sale
A worked RES examination question on commission and parties, from our Paper 1 bank — with the rule it turns on, and why each of the four options is right or wrong.
The question
Agent A advertises a new development at his own cost across several portals. A buyer responds to that advertisement, views a unit with Agent A on two occasions, and is given the floor plans, the finishes schedule and the indicative pricing. He then goes quiet for some weeks. He returns to the development one Saturday on his own, walks into the showflat, is received by Agent B, and completes the purchase of the same unit through her; her involvement consists of taking him through the paperwork and witnessing the signing. Both agents now claim the commission, and the developer asks to be told which of them to pay.
Which statement is correct?
The answer, and why
Answer: B
The rule. Commission follows the effective cause of the sale. An agent whose introduction set the chain in motion may claim even though another agent completed the paperwork.
Why B is correct. But for Agent A's advertisement and viewing, the buyer would not have known of the unit.
The other options.
- A rewards whoever closed.
- C treats the buyer's independent return as breaking the chain, which is exactly the situation the doctrine addresses.
- D invents an automatic split.
Exam note. Ask what actually brought this buyer to this property.
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