Question 75

A broker earns a commission at that point.

In most listing contracts, when a broker successfully procures a ready, willing, and able buyer who agrees to the terms of the listing agreement, the broker earns a commission at that moment.

A) earns a commission at that point.

This option is correct because it accurately reflects the standard practice in real estate transactions. When a broker finds a buyer who meets the criteria set forth in the listing agreement, they are entitled to a commission as their effort has resulted in a potential sale.

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

This option is incorrect. While it is true that the final commission payment may be contingent on the closing of the sale, brokers earn their commission upon finding a buyer who is ready, willing, and able, regardless of whether the sale ultimately closes.

C) earns a commission once contract contingencies are satisfied.

This option is also incorrect. Although satisfying contingencies is important for the finalization of a sale, the broker's commission is typically earned at the point of procuring a buyer, not contingent upon contract conditions.

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

This option is not accurate as well. Although a rescind of the contract may affect the closing of the sale, it does not negate the broker's right to a commission earned for bringing a buyer who was ready, willing, and able to enter into the agreement.

Conclusion

Option A is definitively correct as it aligns with the established practices in real estate regarding commission entitlement. Options B, C, and D fail to recognize that the broker earns their commission based on their ability to bring a qualified buyer, independent of whether the sale ultimately closes or contract terms are rescinded.