Contracts
Under New York law, a broker's right to a commission is generally established when:
AThe listing agreement is signed
BThe broker procures a ready, willing, and able buyer who meets the seller's stated terms✓ Correct
CThe closing occurs
DThe purchase contract is signed by the buyer
Explanation
Under New York law, a broker earns a commission when they procure a ready, willing, and able buyer on the seller's stated terms (or terms the seller accepts). The commission is generally earned at that point, even if the transaction later fails to close due to the seller's fault. However, many listing agreements condition payment on closing.
Related New York Contracts Questions
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- The Statute of Frauds requires that real estate contracts in New York must be:
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