Before claiming a commission from a seller, a broker must fulfill prerequisites, including establishing a valid written brokerage agreement, demonstrating fulfillment of contractual duties, and establishing a direct link between their efforts and the successful property transaction.
Before a broker can assert a claim or initiate legal action for a commission from a seller, certain prerequisites must be met. These typically include establishing a valid and enforceable brokerage agreement between the broker and the seller, which outlines the terms and conditions of the commission. The agreement should be in writing, clearly specifying the broker's duties, the property involved, and the agreed-upon commission rate or method of calculation. Additionally, the broker must demonstrate that they have fulfilled their contractual obligations, such as procuring a ready, willing, and able buyer in accordance with the terms outlined in the agreement.
Moreover, the broker must establish a direct and proximate link between their efforts and the successful transaction. This means demonstrating that their actions or services directly contributed to the sale of the property. Meeting these requirements is crucial for the broker to have a legally valid claim for a commission and ensures a fair and transparent process in real estate transactions.
Complete question should be:
What specific requirements must a broker fulfill before being entitled to claim or sue for a commission from a seller?