Regardless of the ethical/legal standpoint, the listing agent would be wrong if he tried to not compensate the realtor. Buyers come and go but agents will be working with each other for years to come, why taint your reputation?
If Client#1 wins based on the offer, WHO submitted the offer? Did they get another agent, or when they went to the L/A, did the L/A double-end it?
Bottom line - sounds like that agent could have some recourse, but will it be worth it?
Since you mentioned the whole situation happened in Central America, neither what I wrote may apply. I am sure the country's real estate law or rules (if any) where this happened regulates this type of transaction.
I don't think that since the listing agent is from US he may apply the same rules in the Central America (unless the same rules needs to be followed) where he lists the property, but I can be wrong. Even within US we as agents must go with federal and state laws (state laws may and sometimes varies from state to state). Now you made me curious the outcome of the whole transaction. Seems very interesting.
Listing agent just stated the Client #1 got the house. He does not want to disclose any details of the accepted offer nor the final price.
Alma and Edyta, this happened in Central America where we have not so many laws and rules, so we are excited to see how you in the US would handle it, buyer, seller and listing agent are from the US. By the way, the asking price of the home is US$1.75 Mio. for a nice beach front home.
Yes, procuring cause is the word, thanks again,we really appreciate it, please feel free to comment or ask further.
Q2-As Alma mentioned, the broker and his agent should be enititled to the commission since they were procuring cause (at least in FL) I don't know California law, so cannot advice if the same may apply in CA