Arizona Real Estate License Practice Exam

The broker has earned a commission when they secure a willing and able buyer making an offer that meets the seller's terms. This is a key stage in the real estate transaction process because it reflects the broker's successful effort in matching a buyer's interest with the seller's requirements.

In real estate, the commission is typically contingent upon the broker fulfilling the conditions laid out in the listing agreement, which usually stipulates that they will earn their commission upon finding a buyer who is ready, willing, and able to purchase the property according to the specified terms. This means that the buyer must have the financial means to follow through with the purchase and must also present an offer that aligns with what the seller is willing to accept.

While listing the property or showing it to prospective buyers might be critical tasks in a broker's role, these actions alone do not guarantee a commission. The actual earning of a commission is directly tied to the successful negotiation and presentation of an acceptable offer from a buyer, hence the importance of that moment in the transaction.

The acceptance of the buyer's offer and the closing of the escrow, although important milestones, focus more on the completion of the transaction rather than the broker's commission stage. The commission is considered earned at the point the