A buyer's broker is entitled to compensation when which event occurs?

• A. If the employer closes on the transaction and the buyer pays commission.
• B. If the broker locates a property that meets the contract specifications and a sale is concluded, regardless of whether the employer closes.
• C. Only if the buyer pays directly.
• D. Only after a court approves the commission.

Answer: (B)

Think about procuring cause: a buyer’s broker earns their commission when that broker’s efforts bring about a sale that meets the contract terms and is concluded. It doesn’t depend on the broker’s own office closing the deal. If the broker finds a property that fits the buyer’s contract specs and a sale is completed, the broker earns the fee, even if the closing is handled by another party or entity. The payment is usually arranged through the closing process (often via the seller’s commission sharing), not by the buyer paying directly or by court approval.