Tennessee Real Estate License Exam Practice Question

In most listing contracts, a broker who procures a ready, willing, and able buyer who agrees to purchase the property in accordance with the terms of the listing agreement

Correct Answer: A

Rationale: In most listing contracts, a broker earns a commission when they successfully procure a ready, willing, and able buyer who is prepared to purchase the property per the listing agreement's terms.

Option B is incorrect as the broker's commission is typically due upon finding a buyer, not contingent on closing the sale. Option C is misleading; while contingencies must be met for the sale to finalize, the commission is earned upon securing a buyer, not after contingencies are resolved. Option D is also inaccurate; if the buyer and seller rescind the contract, the broker has already fulfilled their role in procuring a buyer, thus earning the commission.

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