Massachusetts Real Estate License Practice Test 2026 – The All-in-One Guide to Master Your Exam!

Question: 1 / 400

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

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.

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The property fails to appraise

The seller chooses a different agent

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