Reference no: EM133876765

Assignment:

Sayuri is a licensee who works for an agent specialising in residential property. She is arranging a 90-day sole agency agreement to sell a suburban property belonging to two partners in a law firm, Nish and David. They operate their law firm from this property but have decided to move locations. The agreement used REINZ's standard clauses, and all the required procedures have been followed.

Nish is out of the country, so Sayuri asks David if he has written authorisation showing that he can sign the agency agreement on Nish's behalf. David can't see the need for this and responds -

"No, we have an agreement, but there is no reason to have it in writing. We've had this agreement for years."

Once the agency agreement is finally signed as required, Sayuri brings a number of potential buyers to inspect the property in the first month. She shows one couple, Judith and Bill, through the property three times before they submit a cheeky offer to buy the property.

Sayuri presents the offer and gets a realistic counteroffer from her clients. Sayuri tries to contact Judith and Bill but they say they have changed their mind and wish to withdraw from negotiations. They don't give any further explanation. A week later, Nish and David withdraw the property from the market.

Later in the year, Sayuri discovers that Judith and Bill have gone on to purchase the property directly from Nish and David, seven months after the expiry of the contract period.

Would Sayuri be entitled to commission for the sale of the property? Give the reason for your answer.