A real estate agent’s right to a commission that is contingent upon procuring a ready, willing and able buyer doesn’t necessarily require selling the home. To procure in the context of a real estate transaction means to initiate an uninterrupted chain of events that leads to the transaction. Usually this is satisfied when the real estate agent lists the home on the MLS as that action will initiate a chain of events that leads to an offer. The more complicated phrase is “ready willing and able buyer.” As mentioned above, procuring this type of buyer doesn’t necessarily mean consummation of the sale. Some courts have found this type of buyer to have been procured when there is a signed unconditional contract to sell. As can be seen, this phrase conditioning agent compensation can expose sellers to unanticipated liability for agent commissions. Therefore, it is advisable to condition agent commissions upon the actual consummation of the sale, not merely producing a ready, willing and able buyer.
By Adam Garcia.