Contracts
In Tennessee, a listing broker who procures a ready, willing, and able buyer under the terms of the listing agreement has typically earned their commission:
AOnly when the transaction closes
BWhen the seller accepts the buyer's offer that meets listing terms, unless the listing specifies otherwise✓ Correct
COnly if the seller nets their required amount
DAt the time the listing agreement is signed
Explanation
Under traditional agency law, a broker earns their commission when they produce a ready, willing, and able buyer under the terms set by the seller (in the listing). However, many Tennessee listing agreements now condition the commission on actual closing.
Related Tennessee Contracts Questions
- In Tennessee, when a seller accepts a buyer's offer, the moment the acceptance is communicated to the buyer is known as:
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- An earnest money deposit held in the broker's escrow account is:
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- Novation in a contract context means:
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