Listing Commissions and Related Issues
How and When Listing Commissions are Earned
Your listing contract specifies a listing
price. Your agent’s job is to bring a "ready, willing and
able" buyer to present an offer. If you reach agreement with the
buyer, then the agent has done his job and earned the commission. Once
the sale has closed, the real estate broker gets paid from the proceeds
of the sale.
If the buyer proves unable or unwilling
to conclude the sale, the house is placed back on the market and the
agent has to begin earning his or her commission all over again.
However, if the seller backs out or does
not accept an offer that meets the price and terms of the listing
agreement, the listing broker has still earned the commission. They may
want to be paid, even though you did not actually sell your home.
Therefore, it is very important to carefully consider every detail when
completing your listing contract and accepting an offer to buy your
property.
© 2000 by Terry Light and RealEstate ABC, revised 2004
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