Final answer:
A real estate commission is usually earned during the execution of the sales contract phase once all parties agree and sign the document, making it a binding agreement.
Step-by-step explanation:
A real estate commission is generally earned at a specific stage in the contract process. This phase is known as the execution of the sales contract, also often referred to as the binding agreement phase.
At this point, all the contingencies of the sale are met, and both buyer and seller have agreed to all terms of the sale which is documented in a signed contract.
The commission is usually contingent upon the closing of the sale, where the transaction is finalized and the property's title is transferred from seller to buyer.
However, the earning of the commission is tied to the agent's fulfillment of their contractual duties, typically completed once the contract is ratified.