Under what condition might a seller still owe fees even if they terminate a listing agreement?

The correct answer is related to the situation where a seller may still owe fees even after terminating a listing agreement, specifically when a ready, willing, and able buyer has been found.

In real estate transactions, the listing agreement typically establishes the conditions under which a broker is entitled to a commission. If a broker finds a buyer who is ready, willing, and able to purchase the property on the terms agreed upon, the seller may still be required to pay the broker's commission even if the seller later decides to terminate the listing agreement. This principle is grounded in the notion that the broker has effectively completed their primary obligation by presenting a potential buyer who meets the sellers' criteria.

If a seller unilaterally cancels the listing agreement after a suitable buyer has been identified, this cancellation does not negate the broker's right to a commission because the broker has fulfilled their responsibility of introducing a buyer capable of completing the transaction.

Understanding this helps clarify the contractual nature of listing agreements in real estate transactions and the circumstances under which commission obligations might persist beyond the typical duration of the agreement.