In most listing contracts, when does a broker typically earn their commission?

Prepare for the VanEd National Real Estate Exam. Study with interactive quizzes and detailed explanations. Get ready to ace your test with confidence!

In most listing contracts, a broker typically earns their commission when the seller accepts an offer. This is because the broker's primary role is to facilitate the sale of the property, and their commission is usually contingent upon the successful transaction reaching a mutual agreement between the seller and a buyer.

When the seller accepts an offer, it signifies that both parties are in agreement on the terms of the sale, which is a crucial step in the transaction process. Commission structures often vary, but they are generally based on the successful closing of a sale. Therefore, the acceptance of an offer is a clear point at which the broker's efforts are recognized and rewarded.

While the other options involve stages in the selling process, they do not constitute the point at which the broker earns a commission. Listing the property or the buyer requesting a showing are part of the broader efforts in the real estate process. The buyer making an initial offer also does not directly relate to commission since the transaction only becomes significant for the broker once the offer is accepted.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy