As a real estate agent, you work on commission. Since your pay depends on the final price of the property, the details of the payment, like the timing, can get tricky. The following will dive into some of the common questions and problems that real estate agents need to navigate when it comes to potential issues with their commission.
What is a real estate agent’s salary?
The answer to this question depends on the language in the listing agreement between the seller and agent. It should have a provision that states what percentage of the sale makes up the commission. It is important to note that the real estate agents involved will usually split the commission. The sellers will have one agent, the buyers will have another, and they divide the percentage noted in the listing agreement in half.
When do real estate agents get their commission?
Generally speaking, the seller pays the real estate agent after the completion of the closing process. There are situations that can result in a real estate agent having to fight for their commission. Some examples can include:
- Agent finds the seller a buyer, but the buyer refuses to move forward and tries to get out of their contract with the agent.
- The buyer and seller go behind the agent’s back to finalize the sale to avoid paying commission.
Real estate agents may have legal options if they have issues like this with their commission, the contract, or the conduct of any of the parties involved in the process. If in any of these situations, it is critical to understand what legal steps to take to preserve your interests.
