Contracts
Under a listing contract, a broker earns a commission when they produce a buyer who is:
AInterested in the property and has toured it
BReady, willing, and able to purchase at the listed price and terms✓ Correct
CPre-qualified by any lender
DIntroduced to the property within the listing period
Explanation
The traditional standard for earning a commission is producing a buyer who is ready (committed to buying), willing (not subject to conditions), and able (financially qualified) to purchase at the seller's listed terms.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
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