Critical to Any Listing Contract Is the Question of When

question 17

Multiple Choice

Critical to any listing contract is the question of when the broker becomes entitled to a commission. Traditionally, the broker is still entitled to a commission in all of the following scenarios EXCEPT:

• A) If the seller refuses to sell upon being presented with an offer meeting the original terms and conditions
• B) If the seller cannot deliver the property for any reason due to his or her fault.
• C) If both the buyer and seller sign a contract but then agree to cancel it.
• D) If a contract is contingent upon the buyer obtaining financing and the buyer is unable to do so.

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Definitions:

Cost Driver

A factor that incurs costs, as its presence or level of activity directly affects the total cost of an activity or product.

Inventory Levels

The quantity of goods and materials a company has in stock at a given time, crucial for meeting customer demand and planning production.

Contribution Margin Ratio

A financial metric that indicates the portion of sales revenue that exceeds variable costs and contributes to covering fixed costs and generating profit.

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance.