A licensee located what seems like a ready, willing, and able buyer. However, the deal falls through at closing because the buyer cant obtain necessary financing. At the same time, though, a seller turns out to be unable to provide marketable title. Does the seller still owe a commission to the listing agent in this case?
A. No, because the sale didn't close
B. No, because there was no ready, willing, and able buyer
C. Yes, because the licensee saw the transaction through the closing date
D. Yes, because the seller has an absolute duty to provide marketable title at closing
Answer: B. No, because there was no ready, willing, and able buyer
The most important rule of determining whether a seller is obligated to pay a commission is whether a ready, willing, and able buyer was found during the listing period. This would take precedence over the seller's failure to provide marketable title. A buyer who does not have financial ability to complete the purchase does not qualify as "able."
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