Under what condition is a broker entitled to compensation?

A broker is entitled to compensation when there is a ready, willing, and able buyer who meets the seller's requirements. This condition is pivotal as it establishes that the broker has performed their role effectively by bringing a qualified buyer to the table. The phrase "ready, willing, and able" signifies that the buyer is not only interested in purchasing but also has the financial capacity and intent to do so, along with the necessary prerequisites to fulfill the seller's criteria for the sale.

In real estate transactions, a broker's primary duty is to facilitate the connection between buyers and sellers. Once a buyer who meets all the seller's stipulated conditions is identified, this triggers the broker’s entitlement to a commission. The broker’s work is typically compensated based on their success in introducing such buyers, regardless of whether the sale is ultimately closed or not.

Other conditions like upfront fees, finalization of the sale, or mere signing of a contract do not inherently ensure that a broker is entitled to compensation. Compensation arises from the successful configuration of buyer-seller dynamics, emphasizing the broker's role in navigating these essential elements of real estate transactions.