When is a broker's commission considered "earned" in the absence of prior agreement?

In real estate transactions, a broker's commission is generally considered "earned" when the buyer and seller have a meeting of the minds. This term refers to the moment when both parties agree on the essential terms of a deal, which typically includes an understanding of the price and any conditions of the sale. Achieving this mutual agreement suggests that the broker has successfully facilitated a significant step in the transaction process.

Meeting of the minds indicates that both the buyer and seller are on the same page, establishing a foundation for the subsequent actions required to complete the sale. Although the deal may still need to be formalized through additional steps, such as signing contracts or delivering deeds, the initial agreement is what solidifies the broker’s role in the transaction, providing them the right to claim their commission for the work they have done in bringing the parties together.

The other answer choices, while relevant to parts of the real estate transaction process, do not reflect the point at which the commission is officially considered earned. For instance, consummation of the deal or deed delivery requires a deeper level of completion that typically follows the meeting of the minds. Additionally, merely introducing a buyer to the seller does not fully capture the broker's contribution to achieving an agreement between the two parties.