Critical to any listing contract is the question of when the broker becomes entitled to a commission. Traditionally, the broker is still entitled to a commission in all of the following scenarios EXCEPT:
A) If the seller refuses to sell upon being presented with an offer meeting the original terms and conditions
B) If the seller cannot deliver the property for any reason due to his or her fault.
C) If both the buyer and seller sign a contract but then agree to cancel it.
D) If a contract is contingent upon the buyer obtaining financing and the buyer is unable to do so.

Question

Quizplus · Accepted Answer

The broker typically earns a commission when they fulfill their part of the agreement, which is usually finding a buyer who is ready, willing, and able to purchase the property on the terms agreed upon by the seller. If a contract is contingent upon the buyer obtaining financing and the buyer is unable to secure financing, the broker has still performed their duty by finding a qualified buyer under the agreed terms. The failure to obtain financing is a condition beyond the broker's control and does not negate their right to a commission in traditional agreements. However, in this scenario, it is stated as an exception, which is not typically the case in standard real estate practices.

Critical to Any Listing Contract Is the Question of When