Difficulty: Easy

Average Score: 87%

The listing broker may be due a commission, even when no sale occurred, if the

Rationale

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

In real estate transactions, a listing broker is typically entitled to a commission if they successfully find a buyer who meets the seller's terms, even if the sale does not close. This principle recognizes the broker's role in facilitating the transaction and their efforts in bringing a qualified buyer to the table.

A (potential buyer was unable to obtain financing.) YOUR ANSWER

If a potential buyer cannot secure financing, this does not obligate the seller to complete the sale. The broker's efforts to find a buyer are negated by the buyer's inability to proceed, thus diminishing the broker's claim for a commission in this scenario.

B (sellers decided they no longer wished to sell.) YOUR ANSWER

When sellers choose not to sell, it effectively nullifies the transaction irrespective of the broker's efforts. The broker cannot claim a commission if the seller withdraws from the sale process entirely, as the conditions for a commission are not met.

C (seller refused a buyer's reasonable offer.) YOUR ANSWER

If a seller declines a buyer's reasonable offer, it indicates that the seller is not willing to complete the transaction, regardless of the broker's actions. The refusal of the offer disrupts the conditions necessary for earning a commission since the seller's acceptance is crucial to finalizing a sale.

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

This situation confirms the broker's entitlement to a commission, as they have successfully fulfilled their duty of finding a buyer who is willing to meet the seller's specified terms. Even if the transaction does not close, the broker's effort in bringing forward a qualified offer is recognized as grounds for commission entitlement.

Conclusion

In real estate, a listing broker's right to a commission is contingent on their ability to present a qualified buyer who meets the seller's terms. In this case, option D illustrates the broker's successful efforts, reinforcing their claim to compensation despite the absence of a completed sale. Other scenarios, such as buyer financing issues or seller decisions, do not meet the necessary conditions for the broker to earn a commission.

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