Massachusetts Real Estate License Practice Test

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Prepare for the Massachusetts Real Estate License Test with our comprehensive quiz. Gain confidence with flashcards and multiple choice questions, each with detailed explanations. Ace your exam with ease!

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According to Tristam's Landing, a broker earns no commission if which condition is met?

The contract is denied by the seller
The buyer defaults due to financial inability
The property fails to appraise
The seller chooses a different agent

The correct answer is: The buyer defaults due to financial inability

In the context of Tristam's Landing, a broker earns no commission when the buyer defaults due to financial inability. The ruling in Tristam's Landing v. Pomeroy established that a broker is entitled to a commission only when a transaction is successfully completed, which includes the buyer being able to fulfill the financial obligations required for the purchase. If a buyer defaults because they cannot secure financing, this failure means the sale cannot close, and thus the broker does not earn a commission for that transaction. This principle stresses the importance of the buyer's ability to proceed with the transaction financially, emphasizing that a broker's commission hinges not only on facilitating a meeting of minds but also on the successful closure of the sale under the agreed-upon terms. The other conditions do not directly relate to the buyer's financial capability in the same way.