Agency
In Louisiana, the listing broker earns their commission when:
AThe listing agreement is signed
BA ready, willing, and able buyer is procured and the seller accepts the offer (unless the contract specifies closing as the trigger)✓ Correct
CThe property closes escrow
DThe buyer obtains financing approval
Explanation
Traditionally, a broker earns their commission when they procure a ready, willing, and able buyer and the seller accepts the offer. However, Louisiana listing agreements often specify that commission is earned at closing — check the contract terms.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
EscrowA neutral third-party arrangement where funds, documents, and instructions are held until all conditions of a real estate transaction are satisfied.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Math Concepts
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