This section is from the book "Real Estate Principles And Practices", by Philip A. Benson, Nelson L. North. Also available from Amazon: Real Estate Principles and Practices.
A broker has earned his commission when he has accomplished that for which he was employed. If he was employed to sell, he must bring about a sale. He is not paid for making impressions, nor for interesting people in the property nor for an unsuccessful effort.13 The rule which is supported by many judicial decisions is that the broker is entitled to commission when he produces a purchaser, ready, willing and able to purchase on the terms offered by the seller or terms which he is willing to accept. If a contract of sale has been signed the broker has the best evidence of the success of his work, and a purchaser truly answering the description of ready, willing and able would without question sign such a contract.14 The principal may capriciously change his mind and refuse to make a contract of sale with the broker's customer. He of course does not have to sell, but he is liable to the broker for commission. The broker has performed the service for which he was employed even though no actual sale resulted. He should, however, be prepared to prove that his customer answered the required description.
The broker may make a special arrangement with his principal whereby he limits himself to recovery of commission only in the event of a sale being actually consummated by delivery of the deed and payment of the purchase price. Such arrangement to be binding upon the broker, must be made prior to the time he has earned his commission. If made after rendering the service for which he was employed it would probably not be enforceable by reason of lack of consideration. Any special agreement of this kind should contain a distinct provision that commission on the sale shall be due and payable only if and when the title passes to the purchaser. It should be remembered that the ordinary obligation of the broker is to bring the principals to an agreement so that there is "a meeting of the minds" as to the terms.
12 4 E. D. Smith 354.
13 Sibbold vs. Bethlehem Iron Co., 83 N. Y. 383.
14Wilson vs. Mason, 158 I11. 310.
 
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