California Real Estate SalespersonLaws of Agency and Fiduciary DutiesEasy
A listing broker presents the seller with a buyer who is ready, willing, and able to purchase the property at the seller's exact listed price and terms, but the seller arbitrarily refuses to complete the sale. Is the broker entitled to a commission?
- AYes, but only if the seller had a separate contractual duty to negotiate
- BNo, because no sale was ever completed
- CNo, commission is earned only at close of escrow
- DYes, because the broker satisfied the listing's terms by procuring such a buyer
Show answer & explanationAnswer & explanation
Correct answer: D. Yes, because the broker satisfied the listing's terms by procuring such a buyer
Under California law, a broker earns a commission once a ready, willing, and able buyer is procured who meets the seller's terms, regardless of whether the seller subsequently refuses to close. The seller's refusal does not defeat the broker's earned commission.
Why the other options are wrong
- A. No additional contractual duty is required beyond meeting listing terms.
- B. Completion of sale is not required if the broker met the listing terms.
- C. Commission can be earned before close of escrow under this rule.
Ready, Willing, and Able Buyer
A buyer who is prepared to purchase on the seller's terms and has the financial capacity to do so; procuring such a buyer entitles the broker to commission even if the seller refuses to sell.
- Commission earned upon procurement, not necessarily upon closing.
- Seller's refusal to sell does not forfeit broker's commission.
- Applies when buyer meets exact listed price/terms.
Memory trick: 'RWA' buyer = Real Win for Agent, deal or no deal.