Ace the Michigan Real Estate Salesperson Exam 2025 – Unlock Your Future in Real Estate!

An agent typically earns a commission when they produce a buyer who is willing, able, and ready to buy the property. This concept is central to the nature of real estate transactions and highlights the agent's role in facilitating the sale. At this stage, the agent has successfully fulfilled one of their primary responsibilities by connecting a buyer with a seller and ensuring that the buyer meets the necessary criteria to proceed with the purchase.

This understanding hinges on the importance of not just having a prospective buyer, but one who is also ready to move forward—meaning they have the financial ability to make the purchase and are committed to the process. This aspect of the real estate transaction is often reinforced in real estate training and serves as a fundamental principle in the industry regarding commission entitlement.

The other options reflect points in the process of selling real estate but do not accurately describe the specific moment when an agent rightfully earns their commission. Simply having a property listed or having a contract signed does not guarantee that a sale will take place, and thus the commission is not earned at those stages.