Texas Crammer Practice Exam

In which scenario would a broker not be entitled to a commission after a property is listed?

1. When the seller accepts a lower offer

2. When the seller sells the property privately

3. When the seller rejects a $90,000 offer from a qualified buyer

4. When the property is taken off the market

The correct answer is: When the seller rejects a $90,000 offer from a qualified buyer

A broker is typically entitled to commission when they facilitate the sale of a property, provided that they have fulfilled their contractual obligations. However, there are certain scenarios where this entitlement diminishes. In the scenario where the seller rejects a $90,000 offer from a qualified buyer, the broker may not receive a commission because the deal did not close. The broker’s role is often to bring together a willing buyer and a willing seller; if the seller chooses to decline an acceptable offer, regardless of the qualifications of the buyer, the essential transaction is not completed. The broker's commission is generally contingent upon the successful closing of a sale, so if the seller opts not to proceed with an offer while it is still valid, the broker has not executed the services necessary to earn a commission in that instance. In contrast, if the seller chooses to sell the property privately, accepts a different offer, or takes the property off the market, these actions can fall under different terms of the listing agreement or indicate the fulfillment of specific contractual stipulations that might still warrant a commission depending on the specifics laid out in the contract.