If Seller B refuses an offer after Broker A has produced a buyer who meets all terms, is Seller B obligated to pay the broker a commission?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

The rationale behind the correct answer lies in the role of the broker in a real estate transaction and the nature of the agreement between the broker and the seller. In real estate practice, once a broker has produced a buyer who meets all the terms set forth by the seller, the broker has fulfilled their contractual obligation to facilitate the sale.

Even if the seller ultimately decides to refuse the offer, the key point is that the broker has successfully brought a qualifying buyer to the table based on the seller's specified criteria. This achievement is typically viewed as completing the broker's duty, often entitling them to a commission, as the commission is often earned once a ready, willing, and able buyer is presented.

In contrast, reasons that lead to other choices being less accurate include situations where a buyer may not qualify fully, thus undermining the effectiveness of the broker's efforts. Similarly, a buyer referred from another agent is separate from the original obligations established between the seller and Broker A; the obligation arises primarily from Broker A successfully presenting a buyer meeting the seller's criteria rather than the source of the buyer.

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