Minnesota State Real Estate Practice Test

Which of the following is NOT required for a broker to claim a commission?

1. A signed listing agreement

2. A signed contract between buyer and seller

3. A closing of the transaction

4. A buyer's acceptance of the offer

The correct answer is: A signed listing agreement

To determine which requirement is not essential for a broker to claim a commission, it's important to understand the typical conditions under which brokers earn their fees. A signed listing agreement is generally a foundational document that establishes the broker's authority to represent the seller and outlines the terms of the broker's compensation. Without this agreement, the broker may lack the legal basis to claim a commission from the seller. In contrast, a signed contract between the buyer and seller demonstrates that the transaction is officially recognized, which can be crucial for the broker to claim a commission, especially if the broker facilitated the transaction. Closing of the transaction is also an essential milestone since it marks the completion of the sale, validating that the broker's efforts resulted in a successful deal. Furthermore, a buyer's acceptance of the offer signifies intent to move forward with the agreement, further solidifying the broker's role in the transaction. Therefore, while a signed listing agreement is very important, it is the critical step of closing the transaction that is often definitive for commission claims. In some cases, brokers may be entitled to their commission based on the performance of their duties as defined in the contractual agreements, even if a listing agreement is not explicitly signed. Thus, the absence of a signed listing agreement does not entirely