Under what circumstance might a real estate broker lose their right to a commission?

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The right to a commission for a real estate broker typically hinges on the existence of a valid listing agreement. A valid listing provides the broker with the authority to represent the seller and pursue buyers in the market. If a broker fails to produce a valid listing, it means they lack formal authority and contractual basis to claim a commission from any transactions that occur. Without a valid listing, the broker cannot prove they were authorized to facilitate the sale, leading to the loss of their right to earn a commission from that transaction.

While other circumstances, such as dual representation, listing with another broker, or a sale not closing by the agreed date, can certainly complicate or affect a broker's commission situation, they do not automatically disqualify the broker from earning a commission if proper agreements and disclosures are followed. Therefore, the absence of a valid listing is a fundamental basis for forfeiting commission rights.

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