Difficulty: Easy

Average Score: 100%

A broker presents an offer that is accepted by the seller. At that point the broker

Rationale

A broker does not earn a commission unless the sale closes.

A broker's commission is typically contingent upon the successful closing of a sale, meaning that all terms of the sale have been met and the property has officially changed hands. Until the closing occurs, the broker does not receive payment for their services.

A (earns a commission at that point.) YOUR ANSWER

This choice is incorrect because a broker does not receive a commission merely upon the acceptance of an offer. The commission is only earned once the transaction is finalized at closing, where ownership is officially transferred.

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

This statement accurately reflects the standard practice in real estate transactions. The broker's commission is contingent upon the completion of the sale, which includes fulfilling all contractual obligations and closing the deal.

C (earns a commission once contract contingencies are met.) YOUR ANSWER

While meeting contract contingencies is an important step in the transaction process, it does not guarantee that a commission is earned. The broker must still wait for the closing to occur before receiving their commission, as contingencies can sometimes lead to the deal falling through.

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

Although it is true that if the contract is rescinded the broker will not earn a commission, this choice does not address the primary condition of earning a commission, which is the closing of the sale. Therefore, it does not provide a complete answer to the question regarding when a commission is earned.

Conclusion

In real estate transactions, a broker's commission is not earned until the sale closes. Acceptance of an offer is merely a step in the process; the broker must await the completion of the transaction, fulfilling all contractual obligations, before they receive their commission. This ensures that all parties have met their commitments and that the deal is final.

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