If a seller refuses to sign an offer but the broker finds a buyer who meets the seller's terms, what is the broker's right to compensation?

If a seller refuses to sign an offer but the broker finds a buyer who meets the seller's terms, what is the broker's right to compensation?

• A. The broker has no claim to compensation
• B. The broker must wait for seller to sign before compensation
• C. The broker can only be paid if the sale closes
• D. The broker is entitled to compensation

Answer: (D)

The main idea is that a broker earns compensation by procuring a buyer who is ready, willing, and able to buy on the seller’s terms, even if the seller refuses to sign the offer. If the broker has produced a buyer who meets the seller’s terms and the terms are those set out in the listing or the offered contract, the broker has fulfilled the condition for earning a commission under the listing agreement. The seller’s signature on the offer isn’t the sole trigger for payment; the broker is compensated for bringing a qualifying buyer who could fulfill the sale under the agreed terms. This is why, in this scenario, the broker is entitled to compensation.

The main idea is that a broker earns compensation by procuring a buyer who is ready, willing, and able to buy on the seller’s terms, even if the seller refuses to sign the offer. If the broker has produced a buyer who meets the seller’s terms and the terms are those set out in the listing or the offered contract, the broker has fulfilled the condition for earning a commission under the listing agreement. The seller’s signature on the offer isn’t the sole trigger for payment; the broker is compensated for bringing a qualifying buyer who could fulfill the sale under the agreed terms. This is why, in this scenario, the broker is entitled to compensation.