Final answer:
A broker may be entitled to part of the earnest money if a real estate sale falls through due to a breach by the buyer, as specified in the brokerage agreement.
Step-by-step explanation:
The broker may have the right to a portion of the earnest money under certain conditions as outlined in the contract between the broker and their client, typically included in the real estate purchase agreement. In general, a broker might be entitled to claim part of the earnest money if the sale of the property fails to go through due to a breach of contract by the buyer and the seller retains the earnest money as liquidated damages.
The specific terms under which a broker can claim such funds should be clearly stated in the brokerage agreement and understood by all parties involved prior to the transaction.