When is a broker entitled to receive their commission under common law?

A broker is entitled to receive their commission under common law typically at the point when they find a buyer who is ready, willing, and able to purchase the property at the agreed terms. This principle is rooted in the broker's role in facilitating the transaction and providing the seller with a tangible opportunity to sell their property.

Reaching a stage where a buyer is ready, willing, and able indicates that the broker has successfully fulfilled their primary duty of bringing a potential buyer to the table, which is the critical milestone for triggering the commission. This does not necessarily require the actual transaction to close, nor does it hinge solely on the execution of agreements or the completion of inspection periods, as the primary obligation of the broker is fulfilled the moment they identify a suitable buyer.

Other options involve steps in the sales process but do not align as directly with the point at which a broker's efforts can be compensated under common law. Closing the transaction or the inspection period are further steps that often have no bearing on the right to a commission, because the broker's role is primarily foundational rather than contingent upon these later processes. The signing of the listing agreement secures the relationship but does not itself trigger the entitlement to commission, which is intrinsically linked to the buyer's