Wisconsin Real Estate Sales Practice Exam 2025 – Complete Prep Guide

The correct response highlights the importance of understanding the timing of compensation agreements between a broker and their client. A buyer's broker compensation is considered due and payable at the earlier of the closing date or as stipulated in the written agreement between the parties. This means that if the agreement specifies a different time frame for payment, the broker is entitled to their compensation at that agreed point in time. If there is no specific agreement, then the payment is due at the closing of the transaction.

This understanding is crucial in real estate transactions, as it helps both brokers and clients manage expectations regarding payment. It also emphasizes the necessity of having clear written agreements in place, which can specify terms that may differ from the default of payment at closing.

Recognizing the significance of when payment is due ensures that all parties are aware of their rights and obligations, preventing potential disputes over compensation timing.