The seller listed the property for $95k. Assuming that their listing agreement is typical, the broker would not be entitled to a commission if the seller:

• A. Accepted an offer of $85k from a qualified buyer
• B. Rejected a $95k offer from a qualified buyer
• C. Rejected a $90k offer from an unqualified buyer
• D. Rejected a $90k offer from a financially qualified buyer

Answer: (D)

The amount a broker earns as a commission hinges on a sale closing or on a contract being formed with a buyer who is ready, willing, and able to perform under the terms of the listing. If the seller simply rejects an offer, there is no binding contract and no sale, so no commission is earned.

Rejecting a 90,000 offer from a financially qualified buyer fits this distinction clearly: the buyer could perform, but because the seller chose not to accept the offer, no contract exists and no sale occurs, so the broker would not be entitled to a commission. The other scenarios involve either a sale proceeding (accepting or closing on an offer) or involve a buyer who isn’t actually able to perform, which changes the implications for commission.