Final answer:
A listing broker earns a commission if the exact terms of the listing agreement are met, even if the sale does not materialize. This is due to the contractual nature of the listing agreement. The conditions set within that contract are what determine the broker’s entitlement to a commission.
Step-by-step explanation:
The question revolves around the circumstances under which a listing broker is entitled to a commission. According to a typical listing agreement, if the broker fulfills the conditions outlined in the agreement, they are eligible for compensation. This is true even if the seller decides not to sell, the buyer decides not to buy, or if the seller sells the property to someone that the broker did not introduce to the property. It boils down to the fact that the broker has fulfilled his contractual duties by bringing a buyer who is ready, willing, and able to purchase at the terms set by the seller.
For instance, if a listing agreement states that the broker would receive a commission if they find a buyer willing to purchase the property at a specific price, and such a buyer is found by the broker, the broker would be entitled to their commission, irrespective of whether the seller decides to follow through with the sale. The bottom line is that the agreement's terms dictate whether a commission is due. It is an arrangement that is bound by the contractual terms agreed upon by both the seller and the listing broker.