Able
Definition and meaning of Able in real estate.
Able, in the context of the real estate standard 'ready, willing, and able,' refers to a buyer who possesses the financial capability and legal capacity to complete a property purchase. This means the buyer has the necessary cash, a secured mortgage commitment, or other liquid assets, along with the legal authority to execute the contract.
In more detail
A buyer must meet all three criteria of being ready, willing, and able for a real estate broker to earn their commission under traditional listing agreements. It is not enough for a buyer to want the property or to sign a contract: they must also have the concrete financial means to close the deal.
Sellers rely on pre-approval letters and proof of funds to verify that a buyer is able before accepting an offer. If a buyer fails to secure financing or lacks the funds on the closing date, they are not considered able, which can lead to a default under the contract.
Key facts
| Category | Buying & Selling |
|---|---|
| Required by | Sellers and real estate brokers to ensure transaction viability |
| Typical proof | Proof of funds, bank statements, or mortgage pre-approval letters |
| Watch out for | Financial changes, such as job loss, that can make an approved buyer unable before closing |
A seller accepts an offer after the buyer provides a mortgage pre-approval letter and bank statements, proving the buyer is financially able to close the transaction.
Frequently asked questions
What does ready, willing, and able mean?
It describes a buyer who is prepared to sign (ready), intends to purchase (willing), and has the financial means to buy (able) the property.
Can a broker claim a commission if the sale falls through?
In many states, if a broker produces a ready, willing, and able buyer and the seller backs out, the broker may still be entitled to their commission.