When can a broker legally receive a commission?

A broker can legally receive a commission when they facilitate a successful transaction for either the buyer or seller. This generally occurs when the broker has actively participated in bringing about the sale or lease of a property, thus earning their commission as a reward for their role in the transaction. The commission is typically outlined in a contract or agreement that specifies the services to be provided and the compensation to be received upon completion of the sale.

In contrast, simply listing a property, providing a market analysis, or hosting open houses does not automatically entitle a broker to a commission. The listing may result in a commission if it leads to a sale, but just having the listing alone does not ensure that the broker will be compensated. Similarly, providing a market analysis is a valuable service but does not equate to the broker facilitating a transaction. Hosting open houses is also a part of marketing a property and may help in attracting buyers, but again, it does not guarantee that a commission is earned unless a successful transaction occurs. Therefore, the correct answer highlights the necessity of successfully completing a sale for the broker to receive a commission.