Which statement about commission in relation to listing terms is true?

• A. Commission is typically triggered by satisfaction of listing terms, generally paid by seller
• B. Commission is paid by buyer always
• C. Commission is waived if an accepted offer occurs
• D. Commission is paid only if the deposit is returned

Answer: (A)

The main idea here is that a real estate commission is earned and paid according to what the listing agreement says, and it is usually the seller who pays. The listing contract sets the commission amount, who pays it, and when it’s earned. In practice, the broker earns the commission when the listing terms are satisfied and a sale closes or is otherwise completed under those terms. That most commonly means the seller’s proceeds at closing are used to pay the commission, with a portion possibly shared with the buyer’s agent if there’s a cooperating agreement.

This is why the statement is the best fit: the commission is triggered by meeting the listing terms, not by a buyer paying it or by a deposit returning. The idea that the buyer always pays is not standard practice, and the notion that commission is waived when an offer is accepted or only paid if the deposit is returned does not align with how listing terms traditionally govern payment.