Question 18

A listing licensee is entitled to a commission when the terms of the listing agreement have been met.

A listing licensee earns a commission once all the conditions outlined in the listing agreement have been fulfilled, ensuring that the services they provided are recognized and compensated.

A) the title is delivered

This option is incorrect because the delivery of the title pertains to the transfer of ownership of the property, which is a separate process from the listing agreement. The commission is not contingent upon the title transfer but rather on the completion of the agreed-upon terms in the listing.

B) an offer to purchase has been received by the seller

While receiving an offer is an important step in the selling process, it does not guarantee that the listing licensee will receive a commission. The terms of the listing agreement must be met, which may include additional conditions beyond just receiving an offer.

C) the property is shown to the eventual buyer

Showing the property is part of the marketing process but does not, by itself, qualify the listing licensee for a commission. The listing agreement's terms need to be satisfied, which may include closing the sale or other specific obligations.

D) the terms of the listing agreement have been met

This option is correct as it directly addresses the conditions under which a listing licensee is entitled to commission. Once all terms specified in the listing agreement have been fulfilled, the licensee is entitled to compensation for their efforts.

Conclusion

The correct answer is D because it accurately reflects the necessity for the completion of the listing agreement's terms for a commission to be legally earned. Options A, B, and C fail to recognize that the mere occurrence of events in the sales process does not guarantee a commission unless the specifics of the agreement are satisfied.