When does a broker earn a commission?

A broker earns a commission primarily when they bring a "ready, willing, and able" buyer to the seller. This term refers to a buyer who is prepared to make an offer for the property and has the financial capability to complete the purchase. While this is an essential condition for earning a commission, it may not be the only consideration. Commission agreements can also depend on the specific terms outlined in the listing agreement or contract between the broker and the seller.

Additionally, even if a broker presents a qualified buyer, the completion of the sale itself may involve further negotiations, contingencies, and legal requirements. Therefore, the timing of commission payment can be influenced by these factors, but fundamentally, the broker has fulfilled their role when they have introduced a suitably qualified buyer to the seller.