Question 69

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

A listing licensee earns a commission upon fulfilling the specific terms outlined in the listing agreement. This is typically when the sale closes or when the licensee has performed all required actions to secure a buyer according to the agreement's stipulations.

A) the title is delivered.

This option is incorrect because the delivery of the title occurs at the closing of a real estate transaction, which may not necessarily correspond with the licensee's entitlement to commission. The commission is generally based on performance under the listing agreement rather than the completion of the transaction.

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

While receiving an offer is a significant step in the transaction process, it does not guarantee that the listing licensee will receive a commission. Commission entitlement is based on fulfilling the terms of the listing agreement, which may require more than just receiving an offer.

C) the property is shown to the eventual buyer.

Showing the property is part of the sales process, but this alone does not establish entitlement to a commission. The licensee must meet the specific conditions set in the listing agreement, which may involve securing an accepted offer or closing the sale.

D) the terms of the listing agreement have been met.

This option is correct as it directly correlates with the commission entitlement of the listing licensee. The listing agreement outlines the specific conditions and obligations that, once fulfilled, trigger the payment of commission to the licensee.

Conclusion

The correct answer is D because it aligns with the fundamental principle that a listing licensee earns commission only after meeting the contractual obligations specified in the listing agreement. Options A, B, and C fail to recognize the necessary conditions established in the agreement, making them incorrect in this context.