When does a listing agent earn a commission?

Get ready for the Washington State Managing Broker Exam. Study with multiple choice questions and detailed explanations. Prepare confidently with updated resources!

A listing agent earns a commission when a ready, willing, and able buyer is found because this indicates that the agent has successfully performed the essential task of bringing a buyer who is prepared to purchase the property under the terms set forth. The term "ready, willing, and able" encompasses the buyer's financial capability to buy, as well as their serious intent to do so.

In practice, the commission is typically earned based on the initial agreement between the listing agent and the seller at the time the listing is executed. Even if the property is under contract or the seller lists the property, the commission is contingent upon the completion of the sale and the fulfillment of the listing agreement, which primarily requires a buyer who expresses genuine interest and readiness to purchase.

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