Why is the ready, willing, and able standard important in determining commission?

The ready, willing, and able standard is crucial in determining commission because it assesses whether a buyer possesses the legal capacity to purchase the property. This standard takes into consideration the buyer’s financial resources, intentions, and readiness to fulfill the obligations of the transaction.

A buyer who is deemed "ready, willing, and able" signals to the seller and the real estate agents involved that they are prepared to complete the purchase of the property, provided there are no legal impediments. This legal capability includes aspects such as eligibility under law, sufficient financing, and understanding of property ownership responsibilities.

When the buyer meets this standard, it gives the real estate broker justification to claim their commission, as the broker has effectively brought a legitimate buyer to the table who is legally in a position to move forward with the transaction. This emphasis on legal capability underscores the importance of not just having the desire or financial means, but also the necessary legal footing to proceed with the acquisition of real estate.