The Seller

Included in all MLS Listings, the agent placing the listing information has a signed listing agreement with the Seller specifying a certain fee to be paid for selling the home. Almost without exception, it includes provisions for splitting that fee with the selling agent, regardless of agency representation. For properties not listed in the MLS, we will include a provision in the Purchase Contract which requires the Seller to pay the selling agent at closing.

The Buyer

With but a very few exceptions, the Buyer does not pay their agent a commission at closing. The Seller usually anticipates the selling agent will be paid at closing from the proceeds on the sale of their house. One advantage to the buyer is not to have to pay additional cash at closing. The new mortgage financing anticipates this commission in the amount funded to buy the home.
The exceptions referred to above may include foreclosure properties or For Sale By Owner (FSBO)s properties. For properties not listed in the MLS, we will include a provision in the Purchase Contract which requires the Seller to pay the selling agent at closing. Only in the exceptional case that the Seller refuses to include paying the selling agent’s commission from the closing proceeds would the Buyer be required to paid the “success fee” (commission) to their agent.

The Client Determines How the Agent is Paid

The seller usually agrees within the listing agreement to pay both his agent (the listing agent) and the agent who brings the Purchase Contract (the selling agent) to the seller, or to the listing agent as a representative of the seller.

Each party, buyer and seller, pays their agent as specified in their written agreement.