When does a sales agent earn their commission according to real estate practices?

When does a sales agent earn their commission according to real estate practices?

• A. Presents an oral offer during the listing period.
• B. Is the procuring cause of the sale.
• C. Is an agent of the listing broker.
• D. Is bound by an open listing.

Answer: (B)

A sales agent earns their commission when they are identified as the procuring cause of the sale. This means that the agent has played a crucial role in bringing about the sale by initiating the transaction or by being the one who directly leads to the closing. The concept of procuring cause is a fundamental principle in real estate that ensures agents are compensated for their efforts in successfully facilitating a sale, particularly when their actions are the key factor in completing the transaction. In terms of the other options, merely presenting an oral offer doesn’t constitute the completion of a sale, and thus does not guarantee a commission. Being an agent of the listing broker refers to the agent's relationship to the broker rather than to the commission structure. Similarly, being bound by an open listing does not automatically ensure a commission unless the agent's efforts directly lead to the sale during the listing’s term. Therefore, the significance of being the procuring cause emphasizes the importance of the agent's direct involvement in the transaction to qualify for commission payment.

A sales agent earns their commission when they are identified as the procuring cause of the sale. This means that the agent has played a crucial role in bringing about the sale by initiating the transaction or by being the one who directly leads to the closing. The concept of procuring cause is a fundamental principle in real estate that ensures agents are compensated for their efforts in successfully facilitating a sale, particularly when their actions are the key factor in completing the transaction.

In terms of the other options, merely presenting an oral offer doesn’t constitute the completion of a sale, and thus does not guarantee a commission. Being an agent of the listing broker refers to the agent's relationship to the broker rather than to the commission structure. Similarly, being bound by an open listing does not automatically ensure a commission unless the agent's efforts directly lead to the sale during the listing’s term. Therefore, the significance of being the procuring cause emphasizes the importance of the agent's direct involvement in the transaction to qualify for commission payment.