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  How and When is the Commission Earned?

How and When Listing Commissions are Earned

Your listing contract specifies a listing price. Your agentís 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.

copyright 2000 by Terry Light and RealEstate ABC, revised 2002

 

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