Question 45

At that point the broker does not earn a commission unless the sale closes.

A broker's commission is contingent upon the successful closing of the sale, not merely on the acceptance of an offer by the seller. Until the transaction is finalized, the broker has not earned their commission.

A) earns a commission at that point.

This option is incorrect because a broker does not earn a commission simply when an offer is accepted. The commission is typically contingent upon the sale closing, meaning all necessary conditions and requirements must be satisfied.

B) does not earn a commission unless the sale closes.

This option is correct as it accurately reflects the standard practice in real estate transactions. A broker's commission is only earned after the sale is finalized, which includes the closing of the transaction where all terms have been met.

C) earns a commission once contract contingencies are met.

While this option suggests a scenario where a commission could be earned, it is misleading. Meeting contract contingencies is part of the process leading to a closing, but the broker does not earn a commission until the sale actually closes.

D) does not earn a commission if the buyer and seller agree to rescind the contract.

This option is also incorrect. If the contract is rescinded, it indicates that the sale will not proceed, and therefore, the broker would not earn a commission. However, this scenario does not directly address the point of commission upon acceptance of an offer.

Conclusion

The correct answer, that the broker does not earn a commission unless the sale closes, aligns with standard real estate practices. All other options fail to accurately represent the conditions under which a broker earns their commission, underscoring the importance of the transaction's completion in the commission structure.