In what situations is a broker entitled to a commission, even if a sale does not close?

A broker is entitled to a commission when they produce a ready, willing, and able buyer, even if the sale does not close. This principle is grounded in the idea that the broker’s role is to facilitate the transaction by finding interested parties. As soon as the broker identifies a buyer who meets the criteria of being ready to buy, willing to purchase under the terms agreed, and financially capable to do so, they have fulfilled their fundamental duty.

This principle applies even if subsequent issues arise that prevent the closing of the sale, such as the seller's decision to withdraw or other complications. The broker's entitlement to a commission in this case recognizes the effort and resources expended to generate interest in the property and connect the buyer and seller.

In contrast, simply having a buyer sign a contract typically does not guarantee commission unless the transaction successfully closes. Similarly, completion of home inspections is a step in the process but does not directly result in commission entitlement. Lastly, if the seller changes their mind and decides not to sell, the broker's commission may not be warranted since the seller effectively cancels the transaction. Thus, the situation where the broker produces a ready, willing, and able buyer stands out as the key condition for earning a commission prior to the