Michigan License Law Practice Test

To be entitled to receive a commission on an exclusive listing, which of the following is NOT required?

1. Having a valid and enforceable listing agreement

2. Being the procuring cause

3. Belonging to the real estate board

4. Producing a ready, willing, and able buyer

The correct answer is: Belonging to the real estate board

To receive a commission on an exclusive listing, one of the key requirements is that the agent must have a valid and enforceable listing agreement with the property owner. This ensures that there is a legal contract in place outlining the terms of the listing and the commission to be paid. Additionally, being the procuring cause is important; it establishes that the agent played a significant role in bringing about the sale, meaning they were the one who found the buyer or initiated the transaction. Another crucial requirement is that the agent must produce a ready, willing, and able buyer, indicating that the buyer is prepared to make an offer, has the financial capacity, and is serious about purchasing the property. Belonging to the real estate board, however, is not a requirement for earning a commission on an exclusive listing. While membership in a real estate board can provide additional resources, networking opportunities, and access to Multiple Listing Services (MLS), it is not a legal condition for entitlement to commission in this context. Thus, an agent can still receive a commission even if they are not part of a board, as long as the other requirements are met.