medium · National Real Estate Exam contracts
A broker produces a buyer who signs a contract to purchase a home. Before closing, it is discovered that the seller has a title defect that cannot be cleared, and the deal fails.
Is the broker still entitled to a commission?
- Yes, because the failure to close was due to the seller's default
- Yes, but the broker must collect the fee from the title insurance company
- No, because commissions are only earned upon the delivery of a deed
- No, because the broker's primary duty is to ensure the title is marketable
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