A broker secured a signed offer with a $5,000 deposit on the exact terms of a listing but the seller refused to accept it. Which statement is true?

A broker secured a signed offer with a $5,000 deposit on the exact terms of a listing but the seller refused to accept it. Which statement is true?

• A. The broker has not earned any fee and cannot sue
• B. The seller must accept the offer due to deposit
• C. The deposit must be returned to the buyer
• D. The broker has earned her fee and could maintain a suit for commission in court

Answer: (D)

Procuring cause and a ready, willing and able buyer are the key ideas here. The broker created a situation where a buyer was prepared to enter into a contract on the exact terms of the listing, evidenced by the buyer signing an offer and providing earnest money. Even though the seller refused to sign, that action doesn’t erase the broker’s right to a commission—if the broker was the one who produced a buyer who was ready, willing and able to perform on the listed terms, the broker has earned the fee and could sue for it. The earnest money shows the buyer’s seriousness and the broker’s effectiveness in generating a contract opportunity, which supports a claim for the commission. The deposit itself would typically be returned to the buyer if no contract is formed, but that doesn’t negate the broker’s right to compensation for having procured a ready, willing and able buyer.

Procuring cause and a ready, willing and able buyer are the key ideas here. The broker created a situation where a buyer was prepared to enter into a contract on the exact terms of the listing, evidenced by the buyer signing an offer and providing earnest money. Even though the seller refused to sign, that action doesn’t erase the broker’s right to a commission—if the broker was the one who produced a buyer who was ready, willing and able to perform on the listed terms, the broker has earned the fee and could sue for it. The earnest money shows the buyer’s seriousness and the broker’s effectiveness in generating a contract opportunity, which supports a claim for the commission. The deposit itself would typically be returned to the buyer if no contract is formed, but that doesn’t negate the broker’s right to compensation for having procured a ready, willing and able buyer.