Question 21

The listing broker may be due a commission if the broker located a buyer who made an offer that met all of the seller's terms.

In the context of real estate transactions, if the broker successfully finds a buyer who meets all of the seller's specified conditions, the broker is entitled to earn a commission, regardless of whether the sale is ultimately completed.

A) potential buyer was unable to obtain financing.

This option is incorrect because if a potential buyer cannot secure financing, it indicates that the buyer is unable to proceed with the purchase. The broker's efforts did not result in a successful transaction, thus they would not be entitled to a commission.

B) sellers decided they no longer wished to sell.

This choice is also incorrect. If the sellers change their mind and decide not to sell, the broker cannot claim a commission since no sale occurred, and their services did not lead to a completed transaction.

C) seller refused a buyer's reasonable offer.

This option is incorrect because even if a buyer makes a reasonable offer, if the seller chooses to reject it, no sale is realized. The broker would not be entitled to a commission as their efforts did not culminate in a completed sale.

D) broker located a buyer who made an offer that met all of the seller's terms.

This option is correct. When a broker finds a buyer who meets all the seller's terms, they have fulfilled their obligation and are entitled to a commission, even if the sale is not finalized.

Conclusion

The rationale for why option D is the correct answer hinges on the broker's role in successfully matching a buyer to the seller's stipulated conditions. In contrast, options A, B, and C fail to meet the criteria necessary for a commission because they involve scenarios where no valid sale occurs, thus negating the broker's right to compensation.