Final answer:
The responsibility to compensate a broker when a transaction is not consummated depends on the terms of the contract between the broker and the seller. Typically in real estate, the broker's compensation is contingent on the successful completion of the sale. Regulations for securities sales also apply but are more focused on legal compliance and investor protection.
Step-by-step explanation:
When a broker acting as an agent for the seller is unable to consummate a transaction, it typically depends on the agreement between the broker and the seller as to who is responsible for the broker's commission. In real estate, for instance, compensation to the broker is usually contingent upon the broker's success in finding a buyer who is ready, willing, and able to purchase the property on terms acceptable to the seller. However, the specific terms of the broker's compensation are typically detailed in a listing agreement or contract.
If the seller willingly backs out of a deal, the broker may still be entitled to a commission, depending on the terms of the contract between them. In contrast, if external circumstances or the failure of a condition precedent result in the transaction not being completed, the broker might not receive the commission, unless there are provisions in the contract that guarantee payment despite the failure of the transaction.
Regulatory bodies such as the Securities and Exchange Commission (SEC) regulates and supervises the sale of securities, and while the SEC's role is more about ensuring legal compliance and protecting investors, the principles of brokering and compensation can apply in these contexts too, although specifics can vary widely based on industry, jurisdiction, and the agreements in place.