Real Estate Agents

Almost 99% Of  Real Estate Agents Work On Commission That Are Paid Only When The Transaction Closes.

The Real Estate Industry Requires For All Sales Commissions To Be Paid Out Of The Seller’s Proceeds, At Closing According To The terms Of The Listing Contract. A Six Or Seven Percent Commission That Is Negotiated Is Given To The Listing Broker.


According To Licensing Law, Only Licensed Principal Brokers Can Have “Agents” Or Licensed Salespeople To Work For Them And They Have The Legal Responsibilities Of Running The Brokerage. A Realtor That Works For A Principal Broker Can Negotiate Contracts, But In Reality The Seller Is Negotiating With The Principal Broker, By Proxy. It’s The Principal Broker’s Company Name And Signature On The Listing Contract.

Distribution  Once The Home Is Listed In The Multiple Listing Service (MLS), The Listing Broker Must Disclose The Terms Of The Commissions To The Buyer’s Brokers. When The Buyer’s Broker Presents An Offer To The Seller, It Includes A Provision To Collect Their Share Of The Sales Commission, As Offered By The Listing Broker In The MLS.

In Conclusion The Commission Will Be Split In Four Ways:

  1. Listing Principal Broker
  2. Listing Agent
  3. Buyer’s Principal Broker
  4. Buyer’s Agent

All Commissions Are Paid Upon Recording Of The Deed By The Escrow Officer And Out Of The Seller’s Proceeds.

Commissions are paid according to the terms of two contracts – the listing agreement, and the sales contract.