California Real Estate Practice Exam

If a broker produces an acceptable buyer, but the sale is delayed past the listing agreement's expiration, is the broker still entitled to a commission?

1. No, because the sale was not within the listing period

2. Yes, because the broker produced the buyer

3. No, unless specified by the listing agreement

4. Yes, but only a reduced commission

The correct answer is: Yes, because the broker produced the buyer

The broker would still be entitled to a commission in this scenario because they were able to produce an acceptable buyer, which was their agreed-upon task stated in the listing agreement. Although the sale may have been delayed, it was ultimately a result of the buyer that the broker brought in. Option A is not correct because the sale happened and it was thanks to the broker's efforts, which fulfills their responsibility in the agreement. Option C is not entirely correct as some listing agreements do specify that the broker may still receive a commission if they produce the buyer, even if the sale happens after the listing period. Option D is not the best choice because it suggests that the commission would be reduced, but this may not necessarily be the case depending on the terms of the listing agreement.