133. A listing licensee is entitled to a commission when
Answer: D
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 they fulfill the specific conditions outlined in the listing agreement. This typically includes successfully facilitating a sale or lease of the property as per the agreed terms.
A) the title is delivered
This option suggests that a commission is earned upon the delivery of the title, which is not accurate. While delivering the title is a crucial step in the sale process, it does not directly relate to the licensee's entitlement to commission unless the terms of the listing agreement have been satisfied.
B) an offer to purchase has been received by the seller
Receiving an offer to purchase does not guarantee that the listing licensee is entitled to a commission. The licensee must ensure that the terms of the listing agreement are met, which includes more than just receiving an offer.
C) the property is shown to the eventual buyer
Showing the property to a potential buyer is part of the sales process but does not automatically entitle the licensee to commission. The commission is contingent upon meeting the terms of the listing agreement, which may not be fulfilled simply by showing the property.
D) the terms of the listing agreement have been met
This option is correct as it aligns with the fundamental principle that a listing licensee earns a commission only when they have fulfilled all the conditions specified in the listing agreement. This could include securing a buyer, navigating closing procedures, or other agreed-upon tasks.
Conclusion
The correct answer is D, as it highlights the necessity for the listing licensee to meet the explicit terms of the listing agreement to be entitled to a commission. Options A, B, and C fail to recognize that mere procedural actions do not equate to fulfilling the contractual obligations necessary for earning a commission. Thus, understanding the significance of contractual terms is essential in real estate transactions.