Contracts

When a buyer and seller sign a purchase agreement in Louisiana, the broker's commission is typically earned when:

AThe listing agreement is signed
BA ready, willing, and able buyer is procured who meets the listing terms✓ Correct
CThe act of sale (closing) is completed
DThe buyer deposits earnest money

Explanation

Under traditional legal principles, a broker earns their commission when they procure a ready, willing, and able buyer who meets the seller's stated terms. However, many Louisiana listing agreements condition payment on actual closing.

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