When is a broker generally considered to have earned their commission?

When is a broker generally considered to have earned their commission?

• A. At the closing table
• B. When the listing agreement is signed
• C. When a ready, willing, and able buyer is found on acceptable terms
• D. When a sales contract is signed

Answer: (C)

A broker is considered to have earned their commission when a ready, willing, and able buyer is found on acceptable terms. This principle emphasizes the importance of the broker's role in facilitating a potential sale by connecting sellers with buyers who meet the necessary conditions for purchasing a property. When a broker identifies a buyer who is ready to make a purchase, willing to adhere to the terms set forth by the seller, and financially able to complete the transaction, they fulfill a significant part of their contractual obligation. This does not necessarily require the transaction to be finalized or completed yet, such as at the closing table or when the sales contract is signed. The importance of this timing is rooted in the nature of real estate transactions, where merely having an agreement or contract in place does not guarantee that a broker’s efforts will culminate in a successful sale. Therefore, the key moment from a commission perspective is when the broker presents a qualified buyer to the seller, showcasing their effectiveness in the role.

A broker is considered to have earned their commission when a ready, willing, and able buyer is found on acceptable terms. This principle emphasizes the importance of the broker's role in facilitating a potential sale by connecting sellers with buyers who meet the necessary conditions for purchasing a property.

When a broker identifies a buyer who is ready to make a purchase, willing to adhere to the terms set forth by the seller, and financially able to complete the transaction, they fulfill a significant part of their contractual obligation. This does not necessarily require the transaction to be finalized or completed yet, such as at the closing table or when the sales contract is signed.

The importance of this timing is rooted in the nature of real estate transactions, where merely having an agreement or contract in place does not guarantee that a broker’s efforts will culminate in a successful sale. Therefore, the key moment from a commission perspective is when the broker presents a qualified buyer to the seller, showcasing their effectiveness in the role.