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?

  1. Yes, because the failure to close was due to the seller's default
  2. Yes, but the broker must collect the fee from the title insurance company
  3. No, because commissions are only earned upon the delivery of a deed
  4. No, because the broker's primary duty is to ensure the title is marketable

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