75. In most listing contracts, a broker who procures a ready, willing, and able buyer who agrees to purchase the property in accordance with the terms of the listing agreement
Answer: A
A broker earns a commission at that point.
In most listing contracts, once a broker finds a ready, willing, and able buyer who agrees to the terms outlined in the listing agreement, the broker earns a commission. This occurs regardless of whether the sale ultimately closes, as the broker's obligation is fulfilled by securing a buyer that meets the specified criteria.
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 successfully brings forward a buyer who is prepared to purchase under the conditions set by the listing agreement, the broker is entitled to receive a commission for their service, fulfilling the terms of the contract.
B) does not earn a commission unless the sale closes.
This option is incorrect because it suggests that the broker's commission is contingent solely on the closing of the sale. In fact, brokers earn their commission when they procure a buyer who meets the terms of the listing agreement, independent of whether the transaction ultimately closes.
C) earns a commission once contract contingencies are satisfied.
This option is also incorrect as it implies that the broker’s commission is tied to the satisfaction of contingencies in the sale contract. While contingencies are important in the transaction process, the broker's commission is earned at the point of securing a buyer, not contingent upon those later stages.
D) does not earn a commission if the buyer and seller agree to rescind the contract.
This option is misleading because while a rescission of the contract between the buyer and seller may affect the sale, it does not negate the broker's right to a commission for having secured a buyer. The broker earns the commission upon bringing a willing buyer to the table, regardless of subsequent actions by the buyer and seller.
Conclusion
In summary, option A is definitively correct as it aligns with standard practices in real estate listing agreements where the broker earns a commission once a suitable buyer is procured. The other options fail to recognize the broker's entitlement to a commission based on their successful efforts in finding a buyer, independent of the sale's closure or subsequent actions by the buyer and seller.